Reduction in duty on certain inputs to address the problem of duty inversion:
1) ‘Metal parts’ for use in the manufacture of electrical insulators.
2) Ethylene-Propylene-non-conjugated-Diene Rubber (EPDM), Water blocking tape and Mica glass tape for use in the manufacture of insulated wires and cables.
3) Magnetron upto 1 KW for use in the manufacture of microwave ovens.
4) C- Block for Compressor, Over Load Protector (OLP) & Positive thermal co-efficient and Crank Shaft for compressor, for use in the manufacture of Refrigerator compressors.
5) Zeolite, ceria zirconia compounds and cerium compounds for use in the manufacture of washcoats, which are further used in manufacture of catalytic converters.
6) Anthraquinone for manufacture of hydrogen peroxide.
7) Sulphuric acid for use in the manufacture of fertilizers.
8) Parts and components of Digital Still Image Video Camera capable of recording video with minimum resolution of 800×600 pixels, at minimum 23 frames per second, for at least 30 minutes in a single sequence, using the maximum storage (including the expanded) capacity.
Reduction in Basic Customs Duty to reduce the cost of raw materials:
1) Ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer (SM) from 2.5% to 2%.
2) Isoprene and Liquefied butanes from 5% to 2.5%.
3) Butyl acrylate from 7.5% to 5%.
4) Ulexite ore from 2.5% to Nil.
5) Antimony metal, antimony waste and scrap from 5% to 2.5%.
6) Specified components for use in the manufacture of specified CNC lathe machines and machining centres from 7.5% to 2.5%.
7) Certain specified inputs for use in the manufacture of flexible medical video endoscopes from 5% to 2.5%.
8) HDPE for use in the manufacture of telecommunication grade optical fibre cables from 7.5% to Nil.
9) Black Light Unit Module for use in the manufacture of LCD/LED TV panels from 10% to Nil.
10) Organic LED (OLED) TV panels from 10% to Nil.
11) CVD and SAD are being fully exempted on specified raw materials [battery, titanium, palladium wire, eutectic wire, silicone resins and rubbers, solder paste, reed switch, diodes, transistors, capacitors, controllers, coils (steel), tubing (silicone)] for use in the manufacture of pacemakers.
12) Evacuated Tubes with three layers of solar selective coating for use in the manufacture of solar water heater and system to Nil.
13) Active Energy Controller (AEC) for use in the manufacture of Renewable Power System (RPS) Inverters to 5%, subject to certification by MNRE.
14) Parts, components and accessories (falling under any Chapter) for use in the manufacture of tablet computers and their sub-parts for use in manufacture of parts, components and accessories are being fully exempted from BCD, CVD and SAD.
Reduction in SAD to address the problem of CENVAT credit accumulation:
1) All goods except populated PCBs, falling under any Chapter of the Customs Tariff, for use in manufacture of ITA bound goods from 4% to Nil.
2) Naphtha, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer (SM) for manufacture of excisable goods from 4% to 2%.
3) Metal scrap of iron & steel, copper, brass and aluminium from 4% to 2%.
4) Inputs for use in the manufacture of LED drivers and MCPCB for LED lights, fixtures and LED lamps from 4% to Nil.
Increase in Basic Customs Duty:
1) Metallurgical coke from 2.5% to 5%.
2) Tariff rate on iron & steel and articles of iron or steel, falling under Chapters 72 and 73 of the Customs Tariff, from 10% to 15%. However, there is no change in the existing effective rates of basic customs duty on these goods.
3)Tariff rate on Commercial Vehicles from 10% to 40% and effective rate from 10% to 20%. However, customs duty on commercial vehicles in Completely Knocked Down (CKD) kits and electrically operated vehicles including those in CKD condition will continue to be at 10%.
Miscellaneous:
1) Export duty on upgraded ilmenite is being reduced from 5% to 2.5%.
2) Excise duty structure for mobiles handsets including cellular phones is being changed from 1% without CENVAT credit or 6% with CENVAT credit to 1% without CENVAT credit or 12.5% with CENVAT credit.
3) Excise duty structure of 2% without CENVAT credit or 12.5% with CENVAT credit is being prescribed for tablet computers.
4) Basic Customs Duty on Digital Still Image Video Camera capable of recording video with minimum resolution of 800×600 pixels, at minimum 23 frames per second, for at least 30 minutes in a single sequence, using the maximum storage (including the expanded) capacity is being reduced to Nil. Basic Customs Duty on parts and components of these cameras is also being reduced from 5% to Nil.
5) Concessional customs duty structure of Nil Basic Customs Duty, 6% CVD and Nil SAD on specified parts of electrically operated vehicles and hybrid vehicles, presently available upto 31.03.2015, is being extended upto 31.03.2016.
Improving the quality of life and public health through Swachh Bharat Initiatives.
1) The Scheduled rate of Clean Energy Cess levied on coal, lignite and peat is being increased from Rs. 100 per tonne to Rs. 300 per tonne. The effective rate of Clean Energy Cess is being increased from Rs. 100 per tonne to Rs. 200 per tonne.
2) Concessional customs and excise duty rates on specified parts of Electrically Operated Vehicles and Hybrid Vehicles, presently available upto 31.03.2015, is being extended upto 31.03.2016.
Relief Measures:
1) Exempt artificial heart (left ventricular assist device) from Basic Customs Duty of 5% and CVD.
Allocation of additional resources for infrastructure:
1) The Scheduled rates of Additional Duty of Customs / Excise levied on Petrol and High Speed Diesel Oil [commonly known as Road Cess] are being increased from Rs. 2 per litre to Rs. 8 per litre. The effective rates of Additional Duty of Customs / Excise levied on Petrol and High Speed Diesel Oil [commonly known as Road Cess] are being increased from Rs. 2 per litre to Rs. 6 per litre. Simultaneously, Basic Excise Duty Rates on Petrol and High Speed Diesel Oil (both branded and unbranded) are being reduced by Rs. 4 per litre. Basic Excise duty rates on petrol and diesel are also being increased suitably so as to subsume Education Cess and Secondary and Higher Education Cess presently levied on them. Thus, the net decrease in Basic Excise Duty on branded petrol is Rs. 3.46 per litre, on unbranded petrol is Rs. 3.49 per litre, on branded diesel is Rs. 3.63 per litre and on unbranded diesel is Rs. 3.70 per litre. However, total incidence of excise duties on petrol and diesel remains unchanged.
