BIF seeks reversal of hike in import duties on components, PCBAs; writes to DoT, finance ministry
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BIF seeks reversal of hike in import duties on components, PCBAs; writes to DoT, finance ministryPTI
Last Updated: Apr 19, 2021, 04:16 PM IST
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Synopsis
Earlier in its letter dated March 1, BIF had called attention to the Budget-related notification, and rued that the telecom industry will be liable to pay basic customs duty (BCD) and Social Welfare Surcharge (SWS) on inputs or raw materials for manufacturing of telecommunication equipment falling in the said list.
Agencies
Despite the government push for Make-in-India under the Aatmanirbhar Bharat mission, telecom products made in India will, as a result of the recent move, become costlier than the finished products imported from FTA countries, the BIF claimed.
Duty cut unlikely to revive demand, says the council
The net reduction in import duty on gold is much lesser than the rise in prices, and is not enough to revive demand. It is also expected to have a low impact on smuggling.
The Union Budget had cut customs duty on gold to 7.5 per cent from 12.5 per cent, but had levied an additional 2.5 per cent Agriculture Infrastructure Development Cess and another 10 per cent Social Welfare Surcharge on customs duty. The overall net import duty adds up to 14 per cent including GST, compared to 16 per cent before the Budget.
The 2.19 per cent cut juxtaposed against a 42 per cent rise in gold prices since July 2019, when duty was last raised, may not be a strong trigger for demand, said the World Gold Council.
Market experts and jewellery industry welcome duty cut in gold; price falls nearly 2%
India is the world’s second-largest gold consumer after China. India is slashing the rate for the first time in eight years to curb smuggling of the yellow metal into the country. February 01, 2021 / 06:23 PM IST
Gold prices edged lower to Rs 48,409 per 10 gram as the government reduced customs duty on gold and silver to 7.5 percent from 12.5 percent.
However, there will be a 2.5 percent cess a separate tax on imports on both the metals, called the Agriculture infrastructure and development cess.
India is the world’s second-largest gold consumer after China. India is slashing the rate for the first time in eight years to curb smuggling of the yellow metal into the country.