MANY CONCESSIONS IN CUSTOMS DUTY ANNOUNCED

DUTY ON CERTAIN MACHINERY FOR MANUFACTURE OF LEATHER AND LEATHER GOODS REDUCED

DUTY ON PRE-FORMS OF PRECIOUS AND SEMI-PRECIOUS STONES DRASTICALLY CUT

HOWEVER, TO ENCOURAGE DOMESTIC PRODUCTION DUTY ON SET TOP BOXES DOUBLED; DUTY ON RAW SILK TRIPLED

CUSTOMS DUTY ON IMPORTED LUXERY GOODS SUCH AS HIGH END MOTOR VEHICLES, MOTORCYCLES, ETC. INCREASED

HOWEVER, ENVIRONMENT-FRIENDLY VEHICLES GIVEN BENEFIT OF EXTENDED PERIOD OF CONCESSION

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AIRCRAFT MANUFACTURE, REPAIR AND OVERHAUL INDUSTRY ALSO GIVEN CERTAIN CONCESSIONS

DUTY FREE LIMIT FOR BRINGING JEWELLERY BY ELLIGIBLE PASSENGERS INCREASED

Considering leather and leather goods as a thrust sector for exports, the Finance Minister has proposed to reduce the duty on specified machinery for manufacture of leather and leather goods, including footwear, by 2.5%. Now the duty on such machinery will be 5% instead of 7.5%.

To encourage exports, Shri P. Chidambaram also announced in the Budget 2013-14, a drastic reduction in the duty on pre-forms of precious and semi-precious stones from 10% to a mere 2%. He also announced a total withdrawal of export duty on de-oiled rice bran oil cake, as such a duty had made our exports uncompetitive.

In order to encourage domestic production of Set Top Boxes, as well as for value addition, the Finance Minister announced the doubling of customs duty on them. Now the duty will be increased from 5% to 10%. The duty on raw silk has also been increased from 5% to 15% so as to give a measure of protection to domestic sericulture.

Considering the fact that the prices of unprocessed ilmenite have gone up several fold in the export market and the need to conserve our natural resources, the Finance Minister has proposed a duty of 10% on export of unprocessed ilmenite and 5% on export of upgraded ilmenite.

Duties on steam coal and bituminous coal, both of which are used in thermal power stations, have been equalized and now a 2% customs duty and 2% CVD is to be levied on both kinds of coal.

The customs duty on imported luxury goods such as high-end motor vehicles, motorcycles, yachts and similar vehicles has been increased. In the case of such motor vehicles, the duty has been increased from 75% to 100%; on motorcycles with engine capacity of 800 cc or more the duty now will be 75% instead of 60%. Similarly, the duty on yachts and similar vessels has been increased from 10% to 25%.

On the other hand, to encourage manufacture of environment-friendly vehicles, Shri P. Chidambaram has extended the period of concession now available for specified parts of electric and hybrid vehicles up to 31st March 2015.

Certain concessions have also been extended to the aircraft manufacture, repair and overhaul industry, which is referred to as the MRO industry. It is expected that this will lead to generation of more employment and other benefits. Considering the fact that gold prices have risen sharply, the Finance Minister has proposed to make amends in the baggage rules permitting eligible passengers to bring jewellery. He has proposed to raise the duty free limit to Rs. 50,000 in the case of a male passenger and Rs. One Lakh in the case of a female passenger. However, the usual conditions in this regard will continue to apply.

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Category : Custom Duty (6634)
Type : News (12613)
Tags : Budget (1473)

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