Union Budget 2017-18: Reduction in customs and excise for renewable energy sector
01 February 2017
The union minister for finance and corporate affairs Arun Jaitley today announced substantial relief in customs and excise duties for the renewable energy sector and for manufacture of cashless transaction devices.
In a bid to incentivise domestic value addition under the government's Make in India initiative, Jaitley proposed to reduce customs and excise duties on several items of machinery required for fuel-based power generating system to be set up in the country for demonstration purposes;
systems operating on biogas / biomethane/ byproduct hydrogen; and LED lights or fixtures.
The minister has also proposed zero customs and excise duties on certain items related to cashless transaction devices to promote domestic manufacturing of these products, liquefied natural gas, nickel, vegetable tanning extracts and certain capital goods.
Meanwhile, he has proposed hike in excise duties and levy additional duties under Sec 85 of the Finance Act, 2005 on several tobacco and tobacco-related products.