New Delhi, Feb 22 (IANS) Indian industry has pitched for continuation of the 10 percent peak rate of customs duty in its pre-budget recommendations to the finance ministry ahead of the union budget for the next fiscal due on February 29.
“The Confederation of Indian Indistry recommends continuation of the 10 percent peak rate of customs duty for 2016-17 to provide protection to indigeneous industry, which suffers from certain disadvantages like higher rate of interest and power, among others,” CII said in its memorandum.
Noting that many goods attract “nil” or concessional duty under free trade agreements (FTAs) signed by India, CII said these make it difficult for manufacturers to compete.
“Therefore, the need is to review FTAs, particularly where these are hindrance in creating manufacturing capacities in India,” CII said.
Moreover, with the ongoing global slowdown, many countries “are making all efforts to export to other countries, including India, at a lesser price”.
“In addition, there are a large number of goods having inverted duty structure due to concessional or NIL rate of customs duty under various trade agreements signed with many countries,” it said.