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Customs & Excise Duty

●  Proposal:

Peak rate of basic custom duty for non-agricultural products reduced from 12.50% to 10% .However, 1% additional cess over and above existing 2% education cess is provided to be levied.

The Impact:

The overall impact is likely to be a reduction in non-agricultural commodities.

●  Proposal:

Advalorem basic excise duty component on petrol has been reduced from 8% to 6%.

The Impact:

Petrol prices are regulated and thus, there may not be any reduction in the petrol rates. However, one can expect a fall in petrol price by 50 paisa.



●  Proposal:

Packed biscuits having retail Selling Price less than Rs. 50 per Kg. exempted from excise.

The Impact:

A pack of Parle –G costing Rs. 40/=(for one Kg) is likely to be cheaper by Rs.5/=.



●  Proposal:

Excise duty on all food mixes (including instant food mixes) are fully exempted.

The Impact:

A pack of ready to make pav bhaji mix costing Rs. 50 per pack is likely to be cheaper by Rs. 5-7.



●  Proposal:

Excise duty on pan masala (excluding tobacco) has been reduced from 66% to 45% , however the abatement vis-à-vis the retail sales price for computing the value on which the excise duty is to be computed has been reduced from 50% to 44%.

The Impact:

This amendment is likely to result in reduction of a price of pan masala from Rs.5 by 50 Paisa.



●  Proposal:

Excise duty on cigarettes increased approximately 5-6%.

The Impact:

Cigarettes are likely to be costlier by around 5-7% on retail sale price.



●  Proposal:

Excise duty on plywood reduced from 16% to 8%.

The Impact:

A board of commercial plywood costing Rs. 375 per square meter is likely to be cheaper by Rs.20-25.


●  Proposal:

Excise duty rate on umbrella reduced from 16% to 8% and basic customs duty rate on umbrella parts and panels reduced from 12.50% to 5%.

The Impact:

An umbrella costing Rs.100 is likely to be cheaper by Rs. 7-9.



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