To stimulate local manufacturing, the government has removed customs duty exemptions for 350 commodities
04 February 2022, Mumbai:
In order to boost domestic manufacturing, the government has removed customs tax exemptions for 350 items, including wearable gadgets, in its budget for 2022-2023. In order to rationalize customs duty rates, the Central Board of Indirect Taxes and Customs tweeted that it has conducted a complete examination of customs duty exemptions on capital items and project imports.
The CBIC also stated that it intends to phase away approximately 40 customs exemptions over time. The Union Budget, which was presented to Parliament on February 1, proposed eliminating concessional rates on capital goods and project imports and replacing them with a 7.5 percent tax.
According to the Press Trust of India, the government elected not to remove exemptions for machinery used in India, such as in garment production, for which components are not already made in the nation.
Wearable gadgets, hearable devices, and electronic smart meters, a rapidly developing product category in the country, are one product category for which the government has opted to standardize customs tax rates. Wearable device inputs, components, and sub-parts will be steadily enhanced.
Mobile phones and other devices are among the other products whose customs tax rates may alter.
The government did choose to lower some customs charges, such as the customs duty on cut and polished diamonds and gemstones, which was reduced from 7.5 percent to 5%.
Furthermore, diamonds that are merely sawn and imported under the Kimberley Process Certification Scheme will not be subject to any customs duties.
Imitation jewelry would be subject to a new baseline customs charge of 20% or Rs 400 per kilogramme, whichever is greater.
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*Figures mentioned in the above article have been sourced from Fashion Network article.