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Assocham seeks zero import duty on capital goods
November, 27th 2006

Assocham has urged the Government to do away with import duty on all capital goods equipment and Customs tariff on all goods used for telecom equipment manufacture, telecom shelter, power conditioner and sheet metal from the current level of 12.5 per cent.

In its pre-Budget memorandum submitted to the Government, the chamber has also sought zero Customs tariff on raw material, inputs, components required for manufacturing purposes and electronic items, including telecom equipment.

All inputs for the components industry should attract zero Customs duty so as to enable the domestic components industry to compete with imports, the chamber said.

Replacement of multiple taxes by goods and services tax (GST) will increase the tax-GDP ratio by two per cent.

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