Govt must cut number of slabs in Customs duty

The finance ministry has made a good beginning by reviewing the exemptions with intent to eliminate them

The finance ministry has taken up a review of 523 entries in 5 different Customs exemption notifications. The idea is to eliminate these exemptions after receiving responses from the trade. This move follows removal of 80 outdated exemptions last year and the statement of the finance minister in her Budget speech that more exemptions will be reviewed and eliminated after due consultation with stakeholders.

The list of exemptions for review include 241 entries in the notification 25/99-Cus dated February 28, 1999 (mostly end-use-based exem­ption in the electronics industry), 59 entries in the notification 25/2002 dated March 1, 2002 (mostly end-use-based exemptions