Customs duty collection to go up by Rs 33,000 cr

The increase in duty on precious metals and luxury cars will help in custom duty collections touching Rs 1.86 lakh crore in 2012-13 fiscal.

This will mean a 22% growth or an additional Rs 33,694 crore from customs duty in the next fiscal. In the current fiscal, it aims to raise Rs 1.53 lakh crore.

In the budget, Mukherjee proposed increasing the customs duty on import of completely built cars and SUVs to 75% from 60% (3,000cc engine capacity for petrol and 2,500 cc for diesel vehicles) earlier.

Precious metals like gold and platinum will also become more expensive as the customs duty in imported standard bar has been hiked to 4% from 2% and those on non-standard gold bar has been hiked to 10% from 5% earlier.

Imported bicycles will also become more expensive as customs duty has been hiked to 30% from 10%, while the same for bicycle parts has been increased to 20% from 10%.

The government is targeting to collect additional Rs 580 crore by increasing customs duty on education cess as well.

The government aims to raise Rs 55,610 crore from basic duties, up from Rs 47,130 crore in 2011-12.

Besides from additional duty of customs(CVD) will help garner Rs 83,700 crore higher than Rs 65,310 crore in 2011-12.

On the other hand, items like imported LCD and LED TV panels of about 20 inches will have lesser increase in price as customs duty on these items has been removed. Similar is the case with LEDs used for making lamps.

The government's proposal related to customs and central excise will result in net revenue gain of Rs 27,280 crore in 2012-13, Finance Minister Pranab Mukherjee said in his Budget speech.