The peak rate Customs Duty for non-agricultural products is proposed to be reduced from 12.5 percent to 10 per cent. Announcing this, while presenting the General Budget 2007-08 in the Lok Sabha today, the Finance Minister, Shri P. Chidambaram said that this reduction is one more step towards comparable East Asian rates. He proposed duty reduction on most chemicals and plastics from 12.5 percent to 7.5 percent. Duty reduced on seconds and defectives of steel from 20 percent to 10 percent while all coking coal irrespective of ash content is fully exempted from duty.
The Finance Minister has reduced the Customs Duty on polyester fibers and yarns from 10 percent to 7.5 percent, consequently the duty on raw materials such as DMT, PTA and MEG will also be reduced from 10 percent to 7.5 percent.
Shri Chidambaram also proposed to bring down the duty on cut and polished diamonds from 5 percent to 3 percent; on rough synthetic stones from 12.5 percent to 5 percent; and on unworked corals from 30 percent to 10 percent. He has fully exempted dredgers from import duty.