Customs duty relief to boost manufacturing

Keeping domestic manufacturing in mind, the Budget has lowered the duties on certain raw materials and components while increasing the duties of finished goods.

Customs duty rates will be calibrated to provide a graded rate structure to facilitate manufacturing of wearable devices, hearable devices and electronic smart meters. Duty concessions are offered for parts of transformer of mobile phone chargers, and camera lens of mobile camera module and certain other items.

Customs duty on critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining are being reduced, while duty is being raised on sodium cyanide for which adequate domestic capacity exists.

Duty cuts for up to three decades have been granted to capital goods for various sectors like power, fertiliser, textiles, leather, footwear and food processing. Exemptions for project import duty concessions depriving local producers of a level playing field in coal mining projects, power generation, transmission or distribution projects, railways and metro projects will go.

To encourage the efforts for blending of fuel, unblended fuel shall attract an additional differential excise duty of Rs 2 per litre from October 1, 2022.

While customs duty on cut and polished diamonds and gemstones are being reduced to 5 per cent and simply sawn diamond to nil to promote manufacturing, imitation jewellery will attract at least Rs 400 per kg on imports.