Central government exempts important petrochemical products from full customs duty till June 30

New Delhi. Taking a major decision amid the ongoing conflict in West Asia and disruptions in the global supply chain, the Central Government has exempted full customs duty on the import of important petrochemical products.

This exemption will be applicable till June 30, the objective of which is to provide cheaper raw materials to domestic industries and keep the prices of final products stable. According to the Finance Ministry, the Central Government has given this relaxation to ensure supply stability and to provide relief to consumers on final products.

This will benefit industries dependent on petrochemical ‘feedstock’ and ‘intermediates’ such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing sectors.

This step has been taken by the Government as a temporary and targeted relief measure to ensure availability of essential petrochemical supplies to the domestic industry, reduce cost pressure on ‘downstream’ sectors and ensure supply stability in the country. This will also provide relief to the consumers of final products.

According to the Finance Ministry, apart from this, customs duty exemption has been given to Methyl, Anhydrous Ammonia, Toluene, Styrene, Dichloromethane (Methylene Chloride), Vinyl Chloride Monomer, Poly Butadiene, Styrene Butadiene and Unsaturated Polyester Resin.

Last week, the government had reduced excise duty on petrol and diesel by Rs 10 per liter to protect consumers from the impact of rising global crude oil prices. Along with this, export duty of Rs 21.50 per liter has been imposed on diesel and Rs 29.50 per liter on Aviation Turbine Fuel (ATF).

At present the excise duty on petrol is Rs 3 per liter and on diesel is zero. Disruption of shipping routes due to the West Asia crisis has increased the government’s concerns about imports of fertilizers, crude oil and natural gas.

India is a big importer of fertilizers and petroleum. Global crude oil prices have increased by nearly 50 percent after the US and Israel launched military attacks on Iran on February 28 and Tehran’s massive retaliation.