New Delhi [India], 25 July : The reduction in duty rates on mobile phones and gold-silver imports is expected to significantly boost India's exports, according to CBIC Chairman Sanjay Kumar Agarwal.
Last financial year, mobile phone exports from India were valued at Rs 1.2 lakh crore, and the trend is on the rise.
In the case of gems and jewelry, the recent cut in import duty on gold is expected to bolster jewelry production for export purposes.
"This move will undoubtedly increase jewelry exports from the country," he added.
Bringing cheer to consumers, Finance Minister Nirmala Sitharaman has announced an import duty cut on gold, silver, and platinum.
The total duty on gold has been revised down to 6 per cent from the earlier 15 per cent effective July 24. For platinum, it has been revised down to 6.4 per cent from the 15.4 per cent.
"During the period that the import duty on gold had gone up, we noticed that gold imports under certain free trade agreements (FTAs) had gone up. In addition to that, smuggling was on the rise. Due to all these factors, we decided to reduce the import duty on gold," Agarwal toldin an interview.
Last financial year, customs and the Directorate of Revenue Intelligence (DRI) together seized 4.8 tonnes of smuggled gold.
Gold is a critical raw material for the jewellery sector, which plays a significant role in providing employment, contributing to GDP, and boosting exports.
"High duties on gold raise the cost of raw materials, block capital needed for manufacturing jewellery, and impede the sector's growth," he said. These considerations led to the decision to decrease the duty on gold.
Regarding mobile phones, under the phased manufacturing program, the duty on mobile phones and their parts was increased to 20 per cent, with certain parts subjected to lower rates to deepen the value chain and support domestic manufacturing.
"Over the past four years, substantial capacity has been added, and the value chain has deepened significantly. Domestic production of mobile phones reached Rs 4.1 lakh crore last financial year."
"With the domestic production ecosystem now well-established, the sector no longer requires high protection from tariff barriers. Hence, the duty on mobile phones has been decreased from 20 per cent to 15 per cent," the CBIC Chairman explained.
On GST rationalization, a group of ministers' committee has been established by the GST Council to address various issues, including the application of different rates to similar commodities, duty inversion on certain items, and the reduction of the number of GST slabs, he added.
The committee's mandate is to examine the entire gamut of issues and make recommendations to the GST Council.
On the much-awaited Tesla entry into the Indian market, Agarwal, with getting into specifics, said that the Ministry of Heavy Industries has formulated a scheme to attract major electric vehicle manufacturers to India, with conditions for concessional duty rates tied to investment in the country.
"Based on this scheme, necessary notifications have been issued by the Department of Revenue," the CBIC Chairman concluded.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor