INDIA BUSINESS WORLD - FEBRUARY 16st - FEBRUARY 29th
- 2008
CUSTOMS DUTY REDUCED ON SEVERAL ITEMS, NO CHANGE IN PEAK RATE
No change has been effected in the peak rate of customs duty in the General Budget 2008-09. Customs duty has been reduced for certain industries with a view to provide a fillip or to remove anomalies.
Customs duty on project imports has been reduced from 7.5 per cent to 5 per cent. However, a special CVD of 4 per cent would be imposed on some specified projects in the power sector.
The duty on steel melting scrap and aluminium scrap reduced to nil from 5 per cent. Specified parts of Set Top Boxes and specified raw materials for using IT/Electronic industry have been fully exempt from customs duty. The duty on convergence products has been lowered to 5 per cent from 10 per cent.
Customs duty on certain specified life saving drugs has been brought down from 10 per cent to 5 per cent. Bulk drugs used for manufacture of such drugs have been totally exempted from customs duty or countervailing duty.
In order to conserve chrome ore and make it available for value added manufacture in India, export duty on this item has been raised to Rs.3000 per MT from Rs.2000 per MT.
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