The finance ministry on Wednesday waived customs duty on cotton imports till September 30, a move which will benefit the textile industry and lower prices for consumers. Currently, cotton imports attract 5 per cent Basic Customs Duty (BCD) and 5 per cent Agriculture Infrastructure Development Cess (AIDC). The industry has been demanding waiver of duty to lower domestic prices.
The Central Board of Indirect Taxes and Customs (CBIC) notified the exemption from customs duty and agriculture infrastructure development cess for import of cotton.
"This notification shall come into effect on the 14th April, 2022, and will remain in force up to and inclusive of the 30th September, 2022," the CBIC said.
This exemption shall benefit the textile chain -- yarn , fabric, garments and made ups and provide relief to consumers. Textile exports would also benefit, the ministry said.
Source Name: Economics Times