Budget 2013: Reduce existing project imports duty to 2 per cent, says FICCI

NEW DELHI: Federation of Indian Chambers of Commerce and Industry ( FICCI) is rooting for the reduction of project import duty from existing five per cent to two per cent in Budget 2013.

The project import duty was earlier slashed from 7.5 per cent to 5 per cent. Customs duty for the Export Promotion Capital Goods (EPCG) clearances was reduced from 3 per cent to nil. "However, reduction of duty for projects failed to fulfill the intended purpose due to the apparent advantages of EPCG license," says FICCI.

FICCI has suggested that that further reduction of projects import duty would take away the unnecessary burden of export obligations through EPCG route.

This would also encourage EPCG licence holders to take recourse to the import of capital goods for the setting up of green field projects and substantial expansions, it says.

Finance Minister, P Chidambaram will be presenting a union budget for the fiscal year starting in April, later this month.