Assocham pitches for peak custom duty reduction

Assocham pitches for peak custom duty reduction
Published: 30 November 2006

New Delhi, Nov 29 (PTI) Industry chamber Assocham today pitched for lowering peak custom duties rate to 10 per cent in the Union budget for 2007-08, from the existing 12.5 per cent.

In a pre-budget deliberation, Assocham’s indirect taxation committee co-chairman Krishna Kant said customs duty rates have been reduced by 2.5 per cent in this fiscal’s budget and there is need to reduce it further by 2.5 per cent.

Peak customs duty can be reduced to 10 per cent on all the goods, except agri-products, he said.

On telecom, he asked the government to create level playing field for indigenous products by exempting from the customs duty all capital goods, raw materials, inputs, components and so on.

To give boost to the cement sector, Krishna Kant suggested realigning the import duty on pet coke, an alternative fuel, with coal duty structure at 5 per cent.