ANNOUNCEMENT 17 Feb 2014

In February 2014, the government of India announced a change in import duties.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 17 Feb 2014 | Removal date: open ended
Still in force

Import tariff

On 17 February 2014, the Indian Minister of Finance presented the interim budget. As 2014 is the year of the general elections in India, the Minister presents a budget only for the period until the elections. Further, the changes in taxes/duties are very limited in an interim budget.
 
The changes relevant to international commerce are as follows:

  • The countervailing duty on imports of road construction machinery is to be re-introduced in order to push domestic production of similar machinery.
  • The customs duty on non-edible industrial oils and its fractions, fatty acids, and fatty alcohols is decreased and unified to 7.5%.
  • Concessional duty of 5% on import of capital goods by Bank Note Paper Mill India Private Limited (effective up to 31 December 2014)
  • Import duty exemption on pulses extended from 1 April 2014 to 30 September 2014

 
Additionally the following reduction in local taxes were made to support local production - 
 

  • Excise duty on mobile phones is reduced to 6%
  • Excise duty on capital goods and consumer non-durables under all goods failing in chapter 84 and 85 reduced from 12% to 10% (up to 30 June 2014)
  • Excise duty on small cars, motorcycles, scooters, commercial vehicles reduced from 12% to 8%, on SUVs from 30% to 24% and on large and mid-segment cars from 27/24% to 24/20%.

 
 

Inception date: 17 Feb 2014 | Removal date: open ended
Still in force

Import tariff

On 17 February 2014, the Indian Minister of Finance presented the interim budget. As 2014 is the year of the general elections in India, the Minister presents a budget only for the period until the elections. Further, the changes in taxes/duties are very limited in an interim budget.
 
The changes relevant to international commerce are as follows:

  • The countervailing duty on imports of road construction machinery is to be re-introduced in order to push domestic production of similar machinery.
  • The customs duty on non-edible industrial oils and its fractions, fatty acids, and fatty alcohols is decreased and unified to 7.5%.
  • Concessional duty of 5% on import of capital goods by Bank Note Paper Mill India Private Limited (effective up to 31 December 2014)
  • Import duty exemption on pulses extended from 1 April 2014 to 30 September 2014

 
Additionally the following reduction in local taxes were made to support local production - 
 

  • Excise duty on mobile phones is reduced to 6%
  • Excise duty on capital goods and consumer non-durables under all goods failing in chapter 84 and 85 reduced from 12% to 10% (up to 30 June 2014)
  • Excise duty on small cars, motorcycles, scooters, commercial vehicles reduced from 12% to 8%, on SUVs from 30% to 24% and on large and mid-segment cars from 27/24% to 24/20%.