New Delhi, Feb.29 : Union Finance Minister P.Chidambaram has proposed a reduction in the custom duty on crude and unrefined sulphur from five percent to two percent in order to support domestic fertilizer production.
The duty exemption on naphtha for use in the manufacture of polymers has been withdrawn and the normal rate of five percent customs duty has been imposed to remove distortions that arise due to its export from refineries and import by manufacturers of polymers.
However, naphtha imported for the production of fertilizers will continue to the exempt from import duty.
The duty on bactofuges has been reduced from 7.5 per cent to nil. This will benefit the dairy industry by increasing the shelf life of milk.
In order to reduce the cost of manufacture of cattle and poultry feeds, the Budget proposals for 2008-09 also proposes a reduction in duty on vitamin premixes and mineral mixtures from 30 percent to 20 percent and on phosphoric acid from 7.5 percent to five percent.
Customs duty has also been reduced for certain industries with a view to provide a fillip or to remove anomalies.
Customs duty on project imports has been reduced from 7.5 percent to five percent. However, a special counterveiling duty of four percent will be imposed on some specified projects in the power sector.
The duty on steel melting scrap and aluminium scrap reduced to nil from five percent. Specified parts of Set Top Boxes and specified raw materials for using IT/Electronic industry have been fully exempt from customs duty. The duty on convergence products has been lowered to five percent from 10 percent.
Customs duty on certain specified life saving drugs has been brought down from 10 percent to five percent. Bulk drugs used for manufacture of such drugs have been totally exempted from customs duty or countervailing duty.
In order to conserve chrome ore and make it available for value added manufacture in India, export duty on this item has been raised to Rs.3000 per MT from Rs.2000 per MT.