Subir Raha, Hinduja Group

Mumbai: Subir Raha, former ONGC chairman and the executive vice-chairman, Hinduja Group India said that customs duty of 5 per cent on Crude when International prices when crude prices were in the $20 range.  Now, with crude prices at over $100 a barrel, and with no foreseeable possibility of softening, the decision to reduce customs duty on crude will help reduce the gap between international and domestic prices. 

Adding further, he welcomed the decision to change from ad valorem to specific duty on regular gasoline and diesel, as the continuing adventitious revenue gains will cease.  He added that this should also have been applicable to two other subsidised products, cooking gas, and kerosene.

Referring to the finance minister's comments about global warming, Raha said the decision to reduce duty on hybrid cars from 24 per cent to 14 per cent  is welcome, adding that this is possibly an activity where duty should even be removed altogether. Given that commercial transport powered by renewable energy is not likely to replace fossil-fuel powered vehicles for at least the next two or three decades, hybrid vehicles are a viable commercial solution, and worthy of maximum incentives.