Budget 2023 showed a reduction in basic customs duty to reduce input costs, deepen value addition, to promote export competitiveness, correct invert duty structure so as to boost domestic manufacturing.
Here is the list of items on which there was seen a fall in the basic custom duty.
Commodity | Rate of Duties | |
AGRICULTURE PRODUCTS | From | To |
Pecan Nuts | 100 | 30 |
Fish meal for manufacture of aquatic feed | 15 | 5 |
Krill meal for manufacture of aquatic feed | 15 | 5 |
Fish lipid oil for manufacture of aquatic feed | 30 | 15 |
Algal Prime (flour) for manufacture of aquatic feed | 30 | 15 |
Mineral and Vitamin Premixes for manufacture of aquatic feed | 15 | 5 |
Crude glycerin for use in the manufacture of Epichlorohydrin | 7.5 | 2.5 |
Denatured ethyl alcohol for use in the manufacture of industrial chemicals. | 5 | NIL |
MINERALS | ||
Acid grade fluorspar (containing by weight more than 97 per cent of calcium fluoride) | 5 | 2.5 |
GEMS & JEWELLERY SECTOR | ||
Seeds for use in the manufacturing of rough lab-grown diamonds | 5 | NIL |
CAPITAL GOODS | ||
Specified capital goods/machinery for manufacture of the lithium-ion cell for use in battery of electrically operated vehicle (EVs) | As applicable | NIL |
IT & ELECTRONICS | ||
Specified chemicals/items for manufacture of Pre-calcined Ferrite Powder | 7.5 | NIL |
Palladium Tetra Amine Sulphate for manufacture of parts of connectors | 7.5 | NIL |
Camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone | 2.5 | NIL |
Specified parts for manufacture of open cell of TV panel | 5 | NIL |
ELECTRONIC APPLIANCES | ||
Heat coil for manufacture of electric kitchen chimneys | 20 | 15 |
OTHERS | ||
Warm blood horse imported by sports person of outstanding eminence for training purpose | 30 | NIL |
Vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies, for the purpose of testing and/ or certification, subject to conditions. | As applicable | NIL |
2023 Budget also served increase in some of the commodities custom duty which is given below in the tabular form, namely:-
Commodity | Rate of Duties | |
CHEMICALS | From | To |
Styrene | 2 | 2.5 |
Vinyl chloride monomer | 2 | 2.5 |
PETROCHEMICAL | ||
Naphtha | 1 | 2.5 |
PRECIOUS METALS | ||
Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form | 7.5 | 10 |
Silver dore | 6.1 | 10 |
GEMS AND JEWELLERY SECTOR | ||
Articles of Precious Metals such as gold/silver/platinum | 20 | 25 |
Imitation Jewellery | 20 OR Rs. 400/kg whichever is higher | 25 or Rs. 600/kg whichever is higher |
AUTOMOBILES | ||
Vehicles (including electric vehicles) in Semi-Knocked Down (SKD) form. | 30 | 35 |
Vehicle in Completely Built Unit (CBU) form, other than with CIF more than USD 40,000 or with engine capacity more than 3000 cc for petrol-run vehicle and more than 2500 cc for diesel-run vehicles, or with both | 60 | 70 |
Electrically operated Vehicle in Completely Built Unit (CBU) form, other than with CIF value more than USD 40,000 | 60 | 70 |
OTHERS | ||
Bicycles | 30 | 35 |
Toys and parts of toys (other than parts of electronic toys) | 60 | 70 |
Compounded Rubber | 10 | 25 OR 30/kg whichever is lower |
Electric Kitchen Chimney | 7.5 | 15 |
Let us now have a look at the 2023 budget custom duty rate changes in central excise.
NCCD Duty rate on Cigarettes
Description of Goods | Rate of Excise Duty | |
From (Rs. per 1000 sticks) | To (Rs. per 1000 sticks) | |
Other than filter cigarettes, of length not exceeding 65 mm | 200 | 230 |
Other than filter cigarettes, of length exceeding 65 mm but not exceeding 70 mm | 250 | 290 |
Filter cigarettes of length not exceeding 65 mm | 440 | 510 |
Filter cigarettes of length exceeding 65 mm but not exceeding 70 mm | 440 | 510 |
Filter cigarettes of length exceeding 70 mm but not exceeding 75 mm | 545 | 630 |
Other cigarettes | 735 | 850 |
Cigarettes of tobacco substitutes | 600 | 690 |
Other Custom Duty Rate Budget 2023
For promoting green fuel, in the Budget 2023 central excise duty exemption is being provided to blended Compressed Natural Gas which is equivalent to the GST paid on Bio Gas/ Compressed Bio gas contained in the blended CNG.
Summary on 2023 Budget Custom Duty Rates
All in all, the budget 2023 introduces these rate change in custom duty in order to promote more of exports and boost domestic manufacturing. Also, the Finance Minister proposed these custom duty rate changes in Budget 2023 to enhance domestic value addition and encourage the green energy and mobility. Nirmala Sitharaman emphasized “A simplified tax structure with fewer tax rates helps in reducing compliance burden and improving tax administration”.