Customs duty likely to be rationalised

By Our Special Correspondent

NEW DELHI, JAN. 4. Mr. Sukumar Shankar, Member, Budget, Central Board of Excise and Customs, Mr. Sukumar Shankar, today indicated the Government's resolve to rationalise and realign the Customs and Central Excise duty structure in the coming budget.

He was addressing a pre-budget interactive session of the PHD Chamber of Commerce and Industry (PHDCCI). Responding to the suggestion of the PHDCCI president, Mr. K.S. Mehta, for categorising commodities based on merit, mean and demerit rates after applying appropriate socio-economic norms independent of revenue bias, Mr. Shankar asked the Chamber to list out specific items for consideration.

Mr. Shankar noted the Chamber's request for moderating the high excise rate structure, ranging from 30 to 40 per cent, on specified commodities to a maximum rate of 20 per cent. In this context, he said that as part of the tax reform process, the Government had taken many initiatives for simplification of procedures and introduced a new excise audit system. Accordingly, the Excise department was accepting the private record of assessees who had paid duty through the PLA system above Rs. 5 crores per annum.

On safeguarding the domestic industry from the onslaught of imports, Mr. Shankar said the Government would accord importance to the strengthening of the indigenous industry in terms of competitiveness by focussing on quality, technology and pricing against imports.

The Chairman of the PHDCCI Excise and Customs Committee, Mr. Sanjay Bhatia, urged that the surcharge of 10 per cent on basic customs duty, due to expire on May 31, 2000, not be extended as there was no justification for the same.

Mr. Shankar said that the Government would charge the lowest rate of customs duty on raw materials and highest rate on finished products as a policy, with exceptions. He asked the PHDCCI to bring to his attention cases of commodities, where distortions were continuing, for appropriate corrective action.

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