Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: form 3cd :: ACCOUNTING STANDARDS :: TDS :: VAT Audit
Customs and Excise »
  Rate of exchange of conversion of the foreign currency with effect from 21st October, 2016
 Rate of exchange of conversion of the foreign currency with effect from 21st October, 2016
 Seeks to amend Notification No. 27/2014-Central Excise
 Government doubles limit of excise duty evasion for arrest and prosecution
 Excise duty evasion limit to warrant arrest revised to Rs 2 crore
 Guidelines for launching of prosecution in relation to offences punishable under the Customs Act, 1962
 GST notification triggers uncertainty over excise duty
 Preparing for GST: govt looking at restructuring excise/customs cadre
 Refund of Terminal Excise Duty (TED) under Deemed Exports where Duty has been paid from CENVAT Credit and ab-initio waiver is not available.
 CBEC directs customs officials for random search of vessels
 Rate of exchange of conversion of the foreign currency with effect from 7th July, 2016

Speed up customs reform
June, 27th 2009

The budget needs to bring custom duty reform back on the agenda. What's required is a plan to halve the peak rate of custom duty to 5% from the current rate of 10% in the next 2-3 years.

In any case, a low to moderate Goods and Services Tax will necessitate that. Lower duties would rev up competitive pressures on domestic industry and so be efficiency-enhancing. The move would also bring down costs.

It's also eminently desirable to eliminate the general bias against the export sector, in policy terms. Note that overall, our merchandise exports remain lacklustre just over 1% of world trade. Yet the immediate slashing of tariffs maybe unwarranted given the unprecedented global slowdown and the possibility of an artificial surge in cheap imports. It may not have the expected beneficial effects, in the current context.

However, tariff reforms ought not to be put on the backburner either. Note that the weighted-average peak customs duty rate on non-agricultural products was slashed from 12.5% to 10% in budget 2007-08; the rate was retained at 10% in 2008-09.

In tandem, there's a sound case to continue with the exemption of 4% special countervailing duty (CVD) on imported goods. It could be argued domestic goods attract value-added tax, and so special CVD should be levied on imports. But the fact is that our relatively high tariff rates hardly leave scope for additional levy. The other suggestion is to reduce peak custom duty keeping raw materials in mind, and not finished goods.

The gameplan for lower duties on raw materials, so as to boost value-addition, may have had some merit in the old days of cascading duties on manufactures. But in a regime of value-added taxes both on production and consumption of goods implying provision for setoffs of taxes paid earlier in the value chain the duty differential between raw materials and finished products is not warranted.

It makes no sense to seemingly boost value-addition behind high tariff walls. It would be tantamount to an economic mirage, against the backdrop of our steady integration with the global economy. We are poised for free-trade with the Association of South-East Asian Nations, and a distorted tariff regime here can mean needless trade diversion to Asean.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions