Jaitley announces cuts in customs and excise duties

Odisha Channel Bureau New Delhi, Feb 28: To promote domestic manufacturing and ‘Make in India’ for creation of more jobs, Union Finance Minister Arun Jaitley announced a series of cuts in Customs and Excise duties in the Union Budget 2015-16 presented in Parliament.Customs duties on certain inputs like Metal parts, insulated wires and cables, Refrigerators compressor parts, compounds used in catalytic converters, Sulphuric Acid for use in manufacture of fertilizers and compounds of Video Cameras have been reduced.Similarly Basic Customs Duty is being reduced on certain raw materials used in lathe machines from 7.5%, to 2.5%, medical video endoscopes from 5% to 2.5 %, telecommunication grade optical fiber cables from7.5% to Nil and LCD/LED TV panels from 10% to Nil.CVD and SAD are being fully exempted on specified raw materials for use in the manufacture of pacemakers.SAD is reduced in Metal scrap of iron & steel, copper, brass and aluminum from 4% to 2% to address problem of CENVAT credit accumulation.For inputs for use in the manufacture of LED driver and MCPCB for LED lights, fixture and LED lamps SAD is reduced from 4% to Nil.Basic Customs Duty is increased for metallurgical coke.Tariff rate is increased on iron & steel and articles of iron or steel.Tariff rate on Commercial Vehicles is increased from 10% to 40% and effective rate from 10% to 20%.Excise duty is restructured on certain goods such as Wafers for use in the manufacture of integrated circuit (IC) modules for smart cards from 12% to 6%, inputs for use in the manufacture of LED lamps from 12% to 6%, specified raw materials for use in the manufacture of pacemakers to Nil, Solar water heater and system from 12.5% to Nil and Tablet computers from 12% to 2%.