Monday, February 28, 2011

Scope of Exemptions Enlarged to Improve Storage of Agricultural Produce
Basic Duty on Specified Agri-Machinery Reduced to 2.5 Per Cent

In the General Budget 2011-12, the scope of exemptions to improve storage and warehouse specialty for agricultural produce has been further enlarged. Presenting the Budget in the Lok Sabha today, the Union Finance Minister, Shri Pranab Mukherjee, said that full exemption from excise duty to air-conditioning equipment and refrigeration panels for cold chain infrastructure has been extended and conveyor belts have been included in the full exemption from excise duty to equipment used in cold storages, mandis and warehouses.

Basic customs duty on the specified agricultural machinery has been reduced to 2.5 per cent from 5 per cent. The concession is also being extended to parts of such machinery to encourage domestic production. Basic customs duty on micro-irrigation equipment has been lowered from 7.5 per cent to 5 per cent. De-oiled rice bran cake have been given full exemption from basic customs duty. Also an export duty of 10 per cent has been levied to discourage its export.

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