Import duty on all types of capital machinery is likely to be fixed at 1.0 per cent from the upcoming fiscal year (FY).
Both export-oriented and other industries may come under the new duty slab from FY 2015-16.
Currently, exporters are enjoying zero duty on import of capital machinery, while other industries are paying 2.0 per cent duty for it.
Indemnity bond facility for import of capital machinery by the export-oriented industries under duty-free facility has been scrapped in the proposed budget.
The proposed Finance Bill 2015 made the duty slab uniform by incorporating a new slab of customs duty (CD) at 1.0 per cent for all businesses, irrespective to export-oriented and other industries.
The Finance Bill 2015 has proposed a six-tire tariff structure - zero per cent, 1.0 per cent, 2.0 per cent, 5.0 per cent, 10 per cent and 25 per cent - for the next FY, from the existing five-tier ones. Presently, zero per cent, 2.0 per cent, 5.0 per cent, 10 per cent and 25 per cent tariff are applicable.
Also, regulatory duty (RD) on some 2,500 products has been lowered to 4.0 per cent.
The Finance Bill 2015 has proposed to reduce the rate of regulatory duty for products, on which maximum of 25 per cent duty is applicable (with some exceptions), and 10 per cent duty on some other products.
Besides, the proposed bill has also restructured the existing supplementary duty (SD) to 11 tiers, from the existing 12 tiers. The changed rates of SD are: 10 per cent, 20 per cent, 30 per cent, 45 per cent, 60 per cent, 100 per cent, 150 per cent, 200 per cent, 250 per cent, 350 per cent and 500 per cent.
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