Govt backtracks from hiking SD on tobacco import
The government on Saturday passed the Finance Bill-2014 reinstating the existing supplementary duty on some products on import to protect local manufacturing industries.
In the approved finance bill, finance minister AMA Muhith reinstated the SD at import stage of some products including toothpaste, soap, detergent powder, leaf spring, razor, razor parts and stainless steel at 20 per cent as a safeguard measures for local industries.
In the budget proposal placed in the parliament on June 5, Muhith proposed to lower supplementary duty to 15 per cent on those items along with some other 770 products.
Supplementary duty on float glass and cosmetics items has been restored to 45 per cent from the proposed 30 per cent, and 30 per cent from 20 per cent on dextrose monohydrate.
Duty on import of LP gas cylinder has been reduced to 10 per cent from the 25 per cent.
The government also reduced SD on hybrid car up to 1,800cc to 45 per cent which was 60 per cent in the original proposal.
The government increased import duty to 25 per cent from 10 per cent on bus/lorry tyre, rim size up to 16 inch.
Customs duty on import of aluminium foil, not backed for backward industries of pharmaceutical sectors, has been reduced to 5 per cent from the 10 per cent and 5 per cent regulatory duty has been withdrawn.
Customs duty on import of graphite electrode used in billet production has been reduced to 10 per cent from 25 per cent and 5 per cent RD has been withdrawn.
Five per cent RD on super enamelled copper wire used in transformer manufacturing industry has been withdrawn.
The proposals were included in the finance bill following the advice of the prime minister, Sheikh Hasina.
On the other hand, the government also reduced SD on unprocessed tobacco to 60 per cent from the existing 100 per cent and 60 per cent from the existing 100 per cent on cigarette paper for commercial import.
The government also reduced CD on electric fan’s motor to 10 per cent from 25 per cent and withdrew 5 per cent RD on the product.
Duty at the rate of 5 per cent on import of pet chips, synthetic filament tow, artificial staple fibre and three raw materials of textile industry, has been withdrawn.
-With New Age input