New Delhi: The Government on Monday reduced customs duty on cement, raw materials, capital goods and a slew of other items to lower manufacturing and infrastructure development costs which have been threatened by record inflation.
Inflation has touched a two-year high and now stands at 6.12 per cent. Customs duty has been lowered on specified capital goods and their parts, and winding wires from 12.5 per cent or 10 per cent to 7.5 per cent. Duty on portland cements has been totally removed from 12.5 per cent at present.
The customs tariff on project imports has been reduced from 12.5 per cent or 10 per cent now to 7.5 per cent. Further, airport development projects and 'Metro Rail projects would now be included in project imports and taxed at the rate of 7.5 per cent.
Moreover, import tariff on primary and semi-finished forms of copper, aluminium, zinc, tin, other base metals has been brought down from 7.5 per cent to 5 per cent. The duty on stainless steel and other alloy steel has been cut to 5 per cent from 7.5 per cent at present. Pipes and tubes of aluminium, copper and zinc would now attract a customs duty of 7.5 per cent from 12.5 per cent now.
"These changes will come into affect immediately," an official statement said.
The measures are aimed at curbing inflation, which rose to 6.12 per cent for the week ended January 6 on rise in prices of manufactured products, besides some food items and fuel.
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