Custom duty cut will promote industry: FM

Responding to the questions raised on indirect taxes in the Finance Bill on Wednesday, Finance Minister Nirmala Sitharaman said that the government has brought in transformational changes to enable growth and employment in the country.

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She said these measures aim to facilitate international trade by simplifying and expediting processes, ultimately reducing logistic and compliance costs.

The overarching goal is to enhance domestic production and increase export competitiveness, she said.

As part of the budget announcements, new customs duty rates are proposed for commodities ranging from life-saving medicines to rare earth minerals to promote domestic production, export competitiveness and creating employment opportunities.

Highlighting the rationale behind the recent customs duty reductions on various items listed in the budget, Sitharaman emphasized that these cuts are intended to lower the prices of raw materials and inputs, making domestic production more cost-effective.