Govt looking to plug loophole in solar equipment import duty: Report

The central government is looking at ways to plug a loophole in regulations that are allowing solar power developers to avoid paying duties of nearly 40% on cells and modules

The central government is looking at ways to plug the loopholes in regulations that are allowing solar power developers to avoid paying duties of nearly 40 per cent on cells and modules, and are only shelling out 5 per cent, reported Livemint on Monday. 

In a bid to reduce imports from China and boost domestic manufacturing, the Centre imposed basic customs duty (BCD) of 40 per cent on solar modules and 25 per cent on cells from April 1. However, several solar developers are tapping 'project import scheme' to save high duties on cells and modules, the report added. 

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