New Delhi, April 2 -- The government on Thursday exempted import of critical petrochemical products from customs duty for three months till June 30, giving relief to sectors like pharmaceuticals, chemicals and textiles, and ensuring supply stability amid the ongoing West Asia crisis.
The "temporary and targeted relief" will cost the exchequer about Rs 1,800 crore, but help ensure price stability, continuity in production and supply chain, CBIC Member (Tax Policy), Sanjay Mangal told reporters at a press briefing.
In a statement, the finance ministry said in light of the ongoing conflict in West Asia and the consequent disruptions in global supply chains, the government has decided to provide full customs duty exemption on critical petrochemical products till June 30.
Sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments will benefit from the duty exemption which will cost the exchequer Rs 1,800 crore. "This measure has been taken as a temporary and ensuring supply stability amid the ongoing West Asia crisis.
The "temporary and targeted relief" will cost the exchequer about Rs 1,800 crore, but help ensure price stability, continuity in production and supply chain, CBIC Member (Tax Policy), Sanjay Mangal told reporters at a press briefing.
In a statement, the finance ministry said in light of the ongoing conflict in West Asia and the consequent disruptions in global supply chains, the government has decided to provide full customs duty exemption on critical petrochemical products till June 30.
Sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments will benefit from the duty exemption which will cost the exchequer Rs 1,800 crore.
"This measure has been taken as a temporary and targeted relief in order to ensure continued availability of critical petrochemical inputs for domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country," it said.
This will also provide relief to consumers of final products, it added.
The goods on which the customs duty have been exempted include Methanol, Anhydrous ammonia, Toluene , Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Poly butadiene, Styrene butadiene and Unsaturated polyester resins.
Disruption in shipping routes amid the West Asia war has raised concerns over imports of fertiliser, crude oil and natural gas. India is a major importer of fertiliser and petroleum.
Global crude prices have risen by almost 50 per cent since the United States and Israel launched military strikes against Iran on February 28, triggering sweeping retaliation from Tehran.
The government had last week slashed excise duty on petrol and diesel by Rs 10 a litre as it looked to shield consumers from the impact of rising global crude prices amid the ongoing war, also imposed an export duty of Rs 21.50 per litre on diesel and Rs 29.50 per litre on Aviation Turbine Fuel (ATF). Excise duty on petrol has been slashed to Rs 3 a litre, while on diesel it is zero currently.
On Wednesday, the government had allowed SEZ units to sell up to 30 per cent of their export turnover in the domestic market. This is a one-time relief window to ease out the pressure faced by existing units in SEZ due to global trade disruptions.
Published by HT Digital Content Services with permission from Millennium Post.