Giving a boost to domestic production and reducing dependence on imports, finance minister
Jaitley proposed to reduce the basic customs duty on fatty acids, crude palm stearin, RBD and other palm stearin, specified industrial grade crude oils from 7.5% to nil for manufacture of soaps and oleo-chemicals. Similarly, duty on crude glycerin has been brought down from 12.5% to 7.5% and crude glycerin used in the manufacture of soaps from 12.5% to Nil.
Moreover, a basic customs duty at 10% has been imposed on specified telecommunication products in order to give a fillip to domestic manufacturing.
While personal computers will get cheaper as all inputs/components used in their production have been exempt from 4% special additional duty (SAD), the finance minister has imposed education cess on imported electronic products to help locally manufactured products equal the ground for competition.
Exempting colour picture tubes from basic customs duty will make cathode ray TVs cheaper.
Attempting to boost SMEs especially in the footwear industry, excise duty has been halved to 6% on footwear of retail price exceeding
On the flip side, in a move that is likely to burn a hole in the pocket of cigarette smokers, FM announced a steep increase in the excise duty on cigarettes in the range of 11% to 72%. What this primarily means for a cigarette smoker is that a small filter cigarette measuring 60-64mm in length will now cost him/her almost double the amount as the cost per thousand sticks in this product category now increases by 72% to
Cost per thousand sticks of cigarettes with long- (70-75mm) and king-filters (75-85mm) will see an increase of 11% and 20.7% (on year) respectively. Prices of cigarettes with extra large filters (85-100mm) remains the same at
While both the industry and the analyst community have been expecting some increase in the excise duty, the steep hike has come as a big shock. According to
The most impacted due to this excise duty hike, analysts say, will be
Jaitley said that increases are also proposed on cigars, cheroots and cigarillos. Likewise, excise duty has also been increased on other 'injurious to health' products. Accordingly, excise duty on pan masala is being increased from 12% to 16% while on unmanufactured tobacco it has been increased by 5% from the earlier 50%. On products like gutkha and chewing tobacco the excise duty is being hike from 60% to 70%.
Attempting to curb the growing consumption of aerated waters, Jaitley proposed to levy an additional duty of excise at 5%.
Credit:Ashish K Tiwari
Most Popular Stories
- Chrysler Gets Nod as a Top Employer for Hispanic Women
- Hispanic Entrepreneurs Set Pace in Florida
- Laid-off Workers Return to Their Fields
- Health-care Deal Aids Port Contract Talks
- Apple Loses Bid to Block Sales of 9 Samsung Phones
- Perry's Lawyers Try to Close Abuse Case
- What's the Law for Kids at Gun Ranges?
- Mario Lopez Inks New Clear Channel Deal
- FBI Probes JPMorgan Hack
- South Korea's Kia to Invest $1 Billion in Mexico