Customs duty cut on inputs to reduce costs
The Budget for 2017-18 proposes to reduce customs duty on inputsAand raw materials to reduce costs, said Union Finance Minister Arun Jaitley on Wednesday.
Presenting the budget proposals, he said the Basic Customs Duty on liquefied natural gas would be reduced to 2.5 per cent from 5 per cent, on medium quality terephthalic acid (MTA) and qualified terephthalic acid (QTA) to 5 percent from 7.5 percent.
The BCD on nickel will be zero as against 2. 5 per cent and on vegetable, tanning extracts like wattle and myrobalan fruit to 5 per cent from 7.5 per cent.
Under capital goods, ball screws, linear motion guides and CNC systems, the BCD will be reduced to 2. 5 per cent from 7.5 per cent and 10 per cent.
"In the renewable energy sector, BCD on all machinery items for fuel cell based power generating systems will be 5 per cent as against 10-7.5 percent and countervailing duty (CVD) 6 per cent as against 12.5 per cent," he announced.
Similarly, BCD on all machinery items for the balance of systems operating on biogas, biomethane, by-product hydrogen will be 5 per cent as against 10-7.5 per cent and CVD 6 per cent against 12.5 per cent.
"To protect the domestic industry, I propose to increase BCD on cashew nut, roasted and salted to 45 per cent from 30 per cent in food processing," said Jaitley.
Similarly, Special Additional Duty on Populated Printed Circuit Boards for use in the manufacture of mobile phones will be 2 per cent as against zero.