Part shifting of customs duty to AIDC to have marginal impact on state transfers: CBIC Chairman

CBIC Chairman Sanjay Kumar Agarwal connected Thursday said the portion shifting of the basal customs work to AIDC volition lone person a marginal interaction connected transfers to states arsenic the full sum progressive would beryllium astir Rs 4,000 crore crossed 30 states.

In the Budget for 2025-26, the authorities has rationalised basal customs work rates, slashing the fig of levies to conscionable eight, but has kept the effectual work rates connected astir items the aforesaid by adjusting cess to further easiness of doing business.

Finance Minister Nirmala Sitharaman removed 7 tariff rates successful the 2025-26 Budget. This is implicit and supra the 7 tariff rates removed successful the 2023-24 Budget.

After this, determination volition beryllium lone 8 remaining tariff rates, including 'zero' complaint to further easiness of doing business.

Economic deliberation vessel Global Trade Research Initiative (GTRI) has said the Budget has reinforced a fiscal strategy the authorities has followed since 2021-22, reducing basal customs work (BCD) portion expanding the agriculture infrastructure and improvement cess (AIDC).

However, the displacement allows the cardinal authorities to clasp much gross because, portion BCD is shared with states, AIDC is not.

"Out of the full customs work collection, the displacement from BCD to AIDC is not huge. There is immoderate shifting but it's not immense and connected a peculiar authorities the interaction volition not beryllium much. Something similar Rs 4,000 crore volition get shifted from BCD to AIDC. But this Rs 4,000 crore volition beryllium successful respect of 30 states. So the interaction for each authorities would beryllium astir Rs 20-30 crore," Agarwal told PTI successful an interview.

Earlier connected February 3, the president has informed that India has importantly reduced its mean customs work complaint to 10.66 per cent from 11.65 per cent and is present moving towards the aforesaid levels arsenic prevalent successful the Southeast Asian countries.

Agarwal has added the complaint rationalisation workout was carried retired with the nonsubjective of making the tariff operation simple, ensuring competitiveness of Indian manufacture and simplifying the taxation regime.