surf india

Indian Budget 2006-07 on Custom Tax

Custom Tax

  • - Custom Duty on non-agricultural products reduced to 12.5% from 15%.
  • - Custom Duty on alloy steel and primary and secondary non-ferrous metals reduced to 7.5% from 10% .
  • - Custom Duty on steel melting scrap raised to 5%.
  • - Custom Duty on ores and concentrates reduced to 2% from 5%.
  • - Custom Duty on refractories and number of materials for manufacture of refractories reduced to 7.5%.
  • - Custom Duty on basic inorganic chemicals reduced to 10% from 15%.
  • - Custom Duty on basic cyclic and acyclic hydrocarbons and their derivatives reduced to 5%
  • - Custom Duty on catalysts reduced to 7.5% from 10%.
  • - Custom Duty on major bulk plastics reduced to 5% from 10%.
  • - Custom Duty on anti-AIDS and anti-cancer drugs has been reduced to 5%. On certain life saving drugs, kits and equipment it is reduced to 5% from 15%. These are exempted from excise duty and CVD.
  • - Custom Duty on packaging machines has been reduced to 5% from 15%. No changing in custom duty of 10% for the transportation of natural gas under pipeline projects. 4% CVD on all imports with few exceptions.
  • - Custom Duty on vanaspati is to be increased to 80%. Import Duty on handmade made fibres, yarns and raw materials (DMT, PTA and MEG) is to be reduced to 10% from 15% and on paraxylene to 2%.