Presenting the Union Budget 2016-17 in the Loki Sabha today, finance minister Arun Jaitley announced a reduction in basic customs and excise duty on refrigerated containers to 5 per cent and 6 per cent, respectively.
To promote the Make in India campaign of the government, Jaitley proposed changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry in sectors like information technology hardware, capital goods, defence production, textiles, mineral fuels and mineral oils, chemicals and petrochemicals, paper, paperboard and newsprint, maintenance repair and overhauling (MRO) of aircraft and ship repair.
Government of India has also taken steps to reduce the cargo release time and transaction costs of exim trade. Jaitley also proposed to amend the Customs Act so as to provide for deferred payment of customs duties for importers and exporters with proven track record.
Indian Customs Single Window Project would be implemented at major ports and airports starting from beginning of next financial year.
Also, customs baggage rules for international passengers have been simplified as filing of baggage declaration will be required only for those passengers who carry dutiable goods.
The facility for revision of return hitherto available to service tax assesses only will be extended to Central Excise assesses also.
Additional options for reversal of input tax credits with respect to non-taxable services provided by banking companies and financial institutions, including NBFCs, by way of extending deposits, loans and advances are proposed in Budget 2016-17.