Duty cut in Budget on certain inputs to boost exports, manufacturing: Commerce Min
The Budget reduces customs duties on inputs like marine products, chemicals, and minerals to boost domestic manufacturing and exports. Duty cuts include Surimi to 5%, chemicals to 7.5-20%, and mineral scrap duties removed. The Model BIT revamp aims to enhance investment treaty negotiations
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New Delhi: The reduction in customs duties in the Budget on certain inputs from sectors like marine, chemicals and critical minerals will help promote domestic manufacturing and enhance exports, according to the Commerce Ministry. It has also said that the announcement to revamp the Model Bilateral Investment Treaty (BIT) will provide better leverage during FTA (free trade agreement) negotiations.
The duty on frozen fish paste (Surimi) and fish hydrolysate for aquatic feed has been reduced to 5 per cent on both these products from the current 30 per cent and 15 per cent, respectively. In the chemicals sector, the levy on pyrimidine and piperazine compounds was cut down to 7.5 per cent from the present 10 per cent; and reduced to 20 per cent on synthetic flavouring essences from 100 per cent. These compounds are used in various medicines. These essences are used to give a certain specific taste or aroma to food and beverages.
On sorbitol, a low-calorie sweetener, the duty has been reduced to 20 per cent from 30 per cent at present. Further, the customs duty on waste and scrap of key minerals (Lithium, Cobalt, Lead, Zinc, Copper) and cobalt powder was removed from the current 10 per cent and 5 per cent, respectively. "These measures will reduce import dependence, lower production costs, and enhance India's global competitiveness in key industries," the ministry has said.
The Budget on Saturday announced revamping the current model BIT to make it more investor-friendly and attract foreign players. These investment treaties help in protecting and promoting investments in each other's countries. Presently, India is negotiating this treaty with the UK, Saudi Arabia, Qatar, and the European Union (EU).
