|
Union Budget 2025: Sitharaman May Introduce a New Customs Playbook; tweaks to turn tariffs into treasure
Budget 2025: India is considering removing customs duty exemptions on certain imported components to boost local manufacturing. The finance ministry is reviewing planned investments and domestic production capabilities across various sectors. Inputs from industry are sought, focusing on promoting the 'Make in India' initiative and assessing impacts on MSMEs and global value chains.
The finance ministry is considering eliminating customs duty exemptions on several imported components in the upcoming budget to enhance local manufacturing, reported ET Bureau on December 24, 2024.
As per the report, these components include bulk drugs used in insulin production, raw materials for lab-grown diamonds, plastics for optical fibre, LED and LCD TV panel parts, and equipment for coal mining and power generation.
The Ministry of Finance is reviewing 31 products where conditional customs duty rates, currently at 0-5%, and exemptions are set to expire by September 2025. Relevant ministries and industry stakeholders have been consulted to evaluate planned investments, domestic production, and capacity.
An official noted, “The review process is underway to decide whether these exemptions should continue or lapse. Inputs from the industry have been sought.”
|
