Assocham pitches for peak custom duty reduction
Industry chamber Assocham on Wednesday pitched for lowering peak custom duties rate to 10 per cent in the Union budget for 2007-08, from the existing 12.5 per cent.
By PTI |
NEW DELHI: Industry chamber Assocham on Wednesday pitched for lowering peak custom duties rate to 10 per cent in the Union budget for 2007-08, from the existing 12.5 per cent.
In a pre-budget deliberation, Assocham's indirect taxation committee co-chairman Krishna Kant said customs duty rates have been reduced by 2.5 per cent in this fiscal's budget and there is need to reduce it further by 2.5 per cent.
Peak customs duty can be reduced to 10 per cent on all the goods, except agri-products, he said.
On telecom, he asked the government to create level playing field for indigenous products by exempting from the customs duty all capital goods, raw materials, inputs, components and so on.
To give boost to the cement sector, Krishna Kant suggested realigning the import duty on pet coke, an alternative fuel, with coal duty structure at 5 per cent.
Similarly, for auto industry, he asked for rationalising duty rate on steel import to five per cent. Currently, 5 per cent duty is charged on non-alloy steel, while for alloy and stainless steel duty is 7.5 per cent.
On the contrary, Krishna said export cess needs to be levied on the export of the Iron ore and the fine of Rs 60 and above to be imposed to discourage export.
On the Excise front, Assocham said the excise duty rate needs to be reduced from the current level of 16 per cent to 14 per cent in the next budget and at a later stage to 12 per cent.
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