Govt slashes import duty, agri and infra cess on LPG import to nil
LPG) from 15% to zero.
The LPG imported by private companies used to attract 15% import duty and 15% agri and infra cess.
The new rates will be effective from September 1, a Central Board of Indirect Taxes and Customs notification said.
On July 1, the government had raised the basic customs duty on domestic LPG cylinders to 15% from 5%.
It has also imposed an Agriculture Infrastructure and Development Cess (AIDC) of 15% on the import of LPG cylinders.
However, the basic customs duty hike was not applicable on imports by state-run oil companies like Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd.
This was to ensure that this duty increase would not affect the common customers.
Earlier this week, the centre announced to slash the price of LPG cylinders for all domestic LPG consumers by Rs 200 per 14.2-kg cylinder and later clarified that the cost would be run by the oil manufacturing company.
The new duty cut will give some relief to OMCs.
