 "Basic custom duty on acyclic & cyclic hydrocarbons rationalised to 2.5%")
In the budget 2016, a number of initiatives have been proposed for chemicals and fertilisers sectors. Excise duty on physical mixture of fertilisers, made out of chemical fertilisers on which duty of excise has been paid, by co-operative societies, holding certificate of manufacture for mixture of fertilisers under the Fertilizer Control Order 1985, for supply to the members of such co- operative societies, is being exempted.
Actual user condition for the imports of phosphoric acid and anhydrous ammonia at concessional basic custom duty (BCD)/CVD for manufacture of fertilisers has been proposed in the budget.
“Customs and excise duty structure plays an important role in incentivising domestic value addition towards Make in India campaign of the Government. In line with that, the Government has proposed to make suitable changes in customs and excise duty rates on certain inputs, raw materials, intermediaries and components and certain other goods and simplify procedures, so as to reduce costs and improve competitiveness of domestic industry in sectors like chemicals & petrochemicals and many other sectors,” said the Ministry of Chemicals and Fertilizers in press release.
BCD on all acyclic hydrocarbons and all cyclic hydrocarbons (other than paraxylene which attracts nil BCD and styrene which attracts 2 percent BCD) have been rationalised to 2.5 percent in the budget. BCD on denatured ethyl alcohol (ethanol) has also been reduced (subject to actual user conditions) from 5 percent to 2.5 percent.
Budget has proposed to reduce special addition duty (SAD) on orthoxylene for the manufacture of phthalic anhydride (subject to actual user condition) from 4 percent to 2 percent. BCD on electrolysers, membrane and their parts required by caustic soda/potash unit using membranes cell technology has been exempted.
In the budget, the government has proposed to introduce Direct Benefit Transfer (DBT) on pilot basis for fertilisers in a few districts across the country, with a view to improving the quality of service delivery to farmers.
“The Soil Health Card Scheme is now being implemented with greater vigour. Through this, farmers get information about nutrient level of the soil and can make judicious use of fertilisers. It has been decided that 2,000 model retail outlets of fertiliser companies will be provided with soil and seed testing facilities during the next three years,” said Ananth Kumar, Minister of Chemicals and Fertilizers, while outlining the initiatives.
The fertiliser companies will also co-market city compost which increases the efficacy of chemical fertilisers. A policy for conversion of city waste into compost has also been approved by the Government under the Swachh Bharat Abhiyan.
Actual user condition for the imports of phosphoric acid and anhydrous ammonia at concessional basic custom duty (BCD)/CVD for manufacture of fertilisers has been proposed in the budget.
“Customs and excise duty structure plays an important role in incentivising domestic value addition towards Make in India campaign of the Government. In line with that, the Government has proposed to make suitable changes in customs and excise duty rates on certain inputs, raw materials, intermediaries and components and certain other goods and simplify procedures, so as to reduce costs and improve competitiveness of domestic industry in sectors like chemicals & petrochemicals and many other sectors,” said the Ministry of Chemicals and Fertilizers in press release.
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Budget has proposed to reduce special addition duty (SAD) on orthoxylene for the manufacture of phthalic anhydride (subject to actual user condition) from 4 percent to 2 percent. BCD on electrolysers, membrane and their parts required by caustic soda/potash unit using membranes cell technology has been exempted.
In the budget, the government has proposed to introduce Direct Benefit Transfer (DBT) on pilot basis for fertilisers in a few districts across the country, with a view to improving the quality of service delivery to farmers.
“The Soil Health Card Scheme is now being implemented with greater vigour. Through this, farmers get information about nutrient level of the soil and can make judicious use of fertilisers. It has been decided that 2,000 model retail outlets of fertiliser companies will be provided with soil and seed testing facilities during the next three years,” said Ananth Kumar, Minister of Chemicals and Fertilizers, while outlining the initiatives.
The fertiliser companies will also co-market city compost which increases the efficacy of chemical fertilisers. A policy for conversion of city waste into compost has also been approved by the Government under the Swachh Bharat Abhiyan.