Textiles Industry to benefit from reduction of Customs Duty

The General Budget 2011-12 seeks to encourage domestic value addition vis-à-vis imports, to remove duty inversions and anomalies and to provide a level playing field for the domestic industry. To this end, the Union Finance Minister, Shri Pranab Mukherjee announced reduction of basic customs duty on several products for textile industry.

- Reduction of basic customs duty on raw silk (not thrown) from 30 to 5%.
- Reduction of basic customs duty from 5% to 2.5% on certain textile intermediates and inputs for chemicals, ferro-alloys and paper.
- Reduction of basic customs duty on certain specified inputs for manufacture of certain technical fibre and yarn from 7.5% to 5%.

Source : Equity Bulls

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