Streamlining Customs Duty: A Path to Simplification

Price Waterhouse & Co LLP suggests simplifying customs duty by categorizing industries into broader categories to reduce tax rates. The government aims to introduce different slabs based on the value chain to minimize classification disputes and rationalize tax structures. The new regime could extend benefits to existing companies expanding their facilities.

Price Waterhouse & Co LLP has proposed a simplification of the customs duty structure in anticipation of the upcoming budget. By grouping industries into broader categories, the firm aims to reduce the overall number of tax rates, facilitating smoother trade operations.

According to Anurag Sehgal, Managing Director at Price Waterhouse & Co LLP, the government may implement varied tax slabs based on a product's position in the value chain, ranging from value-added to raw materials. Such a move aims to resolve classification disputes and create a more straightforward duty framework.

Additionally, the budget is expected to extend current tax benefits, initially offered to new manufacturing companies, to existing firms investing in new facilities. The firm's partner, Sandeep Puri, highlighted the demand for extending the 15% tax rate to facilitate further expansion initiatives within the industry.

(With inputs from agencies.)