Customs duty on auto parts, camera hiked; some EV parts exempted

Finance Minister Nirmala Sitharaman Friday proposed a hike in customs duty on certain automobile parts and digital camera while waiving the same on certain electric vehicle components. Presenting the first Budget of the Modi government in its second term, Sitharaman also announced customs duty exemption on components of specified electronic goods.

She said basic customs duty on auto parts, optical fibres, digital camera, cashew, certain synthetic rubber, and vinyl flooring have been hiked. Also, nominal basic excise duty has been imposed on tobacco, she added.

On the other hand, she said, customs duty on certain parts of electric vehicles has been removed. At the same time, imports of defence equipment are being exempted from basic customs duty.

The finance minister also said that 5 per cent customs duty has been imposed on imported books. She said simplified return form for GST registered businesses is in the offing and observed that relief of Rs 92,000 crore in GST rate reduction per year has been given in the past.

The minister also proposed Legacy Dispute Resolution scheme to solve litigations in service tax and excise. Sitharaman also said the government will set up a digital repository to preserve tribal heritage.