Considering leather and leather goods as a thrust sector for exports, the Finance Minister has proposed to reduce the duty on specified machinery for manufacture of leather and leather goods, including footwear, by 2.5%. Now the duty on such machinery will be 5% instead of 7.5%.

To encourage exports, Shri P. Chidambaram also announced in the Budget 2013-14, a drastic reduction in the duty on pre-forms of precious and semi-precious stones from 10% to a mere 2%. He also announced a total withdrawal of export duty on de-oiled rice bran oil cake, as such a duty had made our exports uncompetitive.

In order to encourage domestic production of Set Top Boxes, as well as for value addition, the Finance Minister announced the doubling of customs duty on them. Now the duty will be increased from 5% to 10%. The duty on raw silk has also been increased from 5% to 15% so as to give a measure of protection to domestic sericulture.

Considering the fact that the prices of unprocessed ilmenite have gone up several fold in the export market and the need to conserve our natural resources, the Finance Minister has proposed a duty of 10% on export of unprocessed ilmenite and 5% on export of upgraded ilmenite.

Duties on steam coal and bituminous coal, both of which are used in thermal power stations, have been equalized and now a 2% customs duty and 2% CVD is to be levied on both kinds of coal.

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 DSM/KKP/MM/46

(Release ID :92750)

Customs duty adjustments reshape export incentives and import protection, altering tariffs for manufacturing inputs and mineral exports. The Budget adjusts indirect tax measures: it reduces duty on specified machinery for leather manufacture and on pre-forms of precious and semi-precious stones and withdraws export duty on a particular oilcake to promote exports. It raises duties to protect and encourage domestic production by increasing import duty on set top boxes and raw silk. Export duties are imposed on unprocessed and upgraded ilmenite to conserve resources, and customs and countervailing duties on steam and bituminous coal are equalised.