India Mulls Extending Import Duty Exemption On 40 Products Beyond June 30
In a temporary and targeted relief, the Centre had exempted import of critical petrochemical products from customs duty effective April 2. Customs duty was cut to 'nil' across 40 different products, including anhydrous ammonia, toluene, styrene, vinyl chloride monomer, and others
New Delhi: In a move to safeguard the domestic industry from supply chain disruptions due to the West Asia war, the government is likely to take a call on extending import duty exemption on about 40 products beyond June 30, after analysing the evolving situation in West Asia and associated revenue implications, an official said on Thursday.
In a temporary and targeted relief, the Centre had exempted import of critical petrochemical products from customs duty effective April 2. Customs duty was cut to 'nil' across 40 different products, including anhydrous ammonia, toluene, styrene, vinyl chloride monomer, and others.
The duty exemption, which is valid till June 30, was intended to benefit sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing segments.
Officials, however, said that associated revenue consideration would have to be considered while deciding on whether the import duty exemption would be extended. “A decision would be taken after analysing the evolving situation around West Asia and cargo movement via Strait of Hormuz,” the official said.
The goods on which the customs duty has been exempted include Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Poly butadiene, Styrene butadiene and Unsaturated polyester resins. The government has set a customs revenue target of Rs 2.71 trillion in the current fiscal, compared to Rs 2.64 trillion in FY26.