Customs duty on LCD panels reduced

CVD OF 4% FULLY EXEMPTED ON COMPONENTS OF MOBILES 
 
GENERAL BUDGET – 2009-10 

While announcing the Indirect Taxes in the General Budget 2009-10 presented in Lok Sabha today, Shri Pranab Mukherjee, Union Finance Minister, reduced the basic customs duty on LCD panels from 10 per cent to 5 per cent to support the indigenous production of LCD televisions. This will be particularly beneficial in creating employment especially in the SME sector. 

Full exemption from CVD of 4 per cent was available to accessories, parts and components imported for the manufacture of mobile phones till the 30th June, 2009. This exemption has been reintroduced for another year. 

Presently, exporters of leather products, textile garments, footwear as well as sports goods are permitted to import raw materials, consumables etc. up to 3 per cent of the f.o.b. value of their exports free of duty. The Minister has now added a few more items to these lists by providing for full exemption from basic customs duty for rough corals for encouraging value-addition and export. 

To combat the phenomena of global warming and climate change, the basic customs duty on permanent magnets – a critical component for Wind Operated Electricity Generators – has been reduced from 7.5 per cent to 5 per cent.