Reduction in basic custom duties on certain items will encourage domestic production, according to Arun Jaitley

14-Jul-14

Finance Minister proposes cut in basic customs duty on some petrochemical units in India to encourage new investment and capacity addition in the chemicals and petrochemicals sector, Finance Minister has proposed a cut in basic customs duty on some petrochemical units. As per Business Standard, the Budget 2014-15 has reduced basic customs duty (BCD) on certain items to boost domestic manufacture and to address the issue of inverted duties. The Minister said that steps have been taken to boost domestic production of electronic items and reduce dependence on imports. These includes imposition of basic customs duty on certain items outside the purview of IT agreement, exemption for inputs/components in PC manufacturing from SAD, imposition of education cess on imported electronic products for parity etc.