: Union Budget may bring changes in customs duties to bolster domestic production #FinanceIndia #StockMarketNEWS Union Budget may bring changes in customs duties to bolster domestic production New Delhi,
@stockMarketNEWS Fri 31 Dec, 2021
Union Budget may bring changes in customs duties to bolster domestic production #FinanceIndia #StockMarketNEWS
Union Budget may bring changes in customs duties to bolster domestic production New Delhi, 30 Dec (KNN) The central government may alter the customs to promote local manufacturing, a source told Mint.
Improving cost-competitiveness and encouraging local value addition are the key areas being worked upon in the FY23 budget.
It is expected that the budget may reduce the duty on basic raw materials, including metals, which have seen prices soar in recent months while withdrawing concessions for an identified list of products, including various intermediates used in manufacturing where domestic capability has improved over the years, the person cited above told Mint.
This decision is being framed on the idea of rationalization of tariffs which was suggested by the experts.
They said that the budget needs to rationalize duties across the value chain, from raw materials and intermediates to finished products, while industry representatives called for customs duty relief for supplies and equipment used in covid-affected sectors such as hospitality.
The budget may simplify import procedures, especially on rules of origin, and certain schemes like manufacturing and other operations in warehouse regulations, said Bipin Sapra, a tax partner at EY India.
Being an expert of such matters he opined that India also needs to rationalize basic customs duties on specialized transport vehicles such as ambulances, which stand at more than 100 per cent.