Exemption of Customs Duty on Cotton Import

To reduce the cotton prices, the Indian government has decided to exempt all customs duties on the imports of cotton. This exemption announced by the government will be benefiting the textile chain- fabric, yarn, made-ups, and garments as well as provide relief to the consumers and the textile industry.

Overview:

• The removal of 5 percent Agriculture Infrastructure and Development Cess (AIDC) and 5 percent Basic Customs Duty (BCD) on raw cotton has been demanded by the industry.
• The exemption of the Agriculture Infrastructure development Cess and Customs Duty for import of cotton has been notified by the Central Board of Indirect Taxes and Customs (CBIC).

When will this come into effect?

From 14^th April 2022, this notification has come into effect and till 30^th September 2022, it will remain in force.

Benefits of exempting customs duty

The exemption of customs duty on the import of raw cotton will have a beneficial effect on the price of cotton in India. This will help in reducing the prices of the commodity which will help this industry.

About Central Board of Indirect Taxes and Customs

It is a nodal national agency of the government that is responsible for administering GST, Customs, Service Tax, Central Excise, and Narcotics in India. In 1855 the Customs & Central Excise department was established by the British Governor-General of India with the aim of administering customs laws in the country and the collection of land revenues and import duties.

Month: Current Affairs - April, 2022

Category: Economy & Banking Current Affairs