CII for continuing 10 percent peak rate of customs duty
[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]A[/dropcap]head of union budget, “The Confederation of Indian Industry” has recommended for the continuation of 10% peak rate of custom duty in its pre-budget recommendations to finance ministry which is due on February 29th.
This recommendation for continuing with 10% percent peak rate of custom duty for 2016-17 is to provide protection to indigenous industry which suffers from certain disadvantages like higher rate of interest and power, among others.
Noting that many goods attract “nil” or concessional duty under free trade agreements (FTAs) signed by India, CII said these make it difficult for manufacturers to compete.
“Therefore, the need is to review FTAs, particularly where these are hindrance in creating manufacturing capacities in India,” CII said.
Moreover, with the ongoing global slowdown, many countries “are making all efforts to export to other countries, including India, at a lesser price”.
“In addition, there are a large number of goods having inverted duty structure due to concessional or NIL rate of customs duty under various trade agreements signed with many countries,” it said.
Here is an informative post on custom duty in India
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