The Budget 2023-24 proposes to reduce the number of basic customs duty rates on goods, other than textiles and agriculture, from 21 to 13 and as a result, there are minor changes in the basic custom duties, cesses and surcharges on some items including toys, bicycles, automobiles, and naphtha says Union Finance Minister Nirmala Sitharaman while presenting Budget 2023-24 in the Parliament. 

 

Denatured ethyl alcohol is used in the chemical industry and the Budget has proposed to exempt basic customs duty on it. This will also support the Ethanol Blending Programme and facilitate energy transition. 

 

Basic customs duty is also being reduced on acid grade fluorspar from 5 per cent to 2.5 per cent to make the domestic fluorochemicals industry competitive. Further, the basic customs duty on crude glycerin for use in manufacture of epichlorohydrin is proposed to be reduced from 7.5 per cent to 2.5 per cent.

 

The basic customs duty rate on compounded rubber is being increased from 10 per cent to ‘25 per cent or Rs. 30/kg whichever is lower’, at par with that on natural rubber other than latex, to curb circumvention of duty.

 

Talking about Green Mobility, Union Finance Minister Nirmala Sitharaman said, "To avoid cascading of taxes on blended compressed natural gas, I propose to exempt excise duty on GST-paid compressed bio gas contained in it. To further provide impetus to green mobility, customs duty exemption is being extended to import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles."