Budget 2001-2002

131. Gems and jewellery have considerable potential for export. I propose to reduce the customs duty on cut and polished coloured gem stones from 35% to 15%. I also propose to reduce the customs duty on specified equipment when imported by training institutes sponsored by the Gem and Jewellery Export Promotion Council from 25% to 15%. The rate of customs duty on rough diamonds would now be 5%.

132. CNG kits and their parts attract low duty at 5%. I propose to extend the same treatment to LPG conversion kits and their parts.

133. LNG is not produced in India. The burden of CVD on the import of LNG adds to the cost of LNG projects. I therefore propose to exempt LNG from CVD.

134. For the same reason, I also propose to exempt wattle extract from the application of CVD.

135. I propose to reduce the customs duty on cement, and clinkers from 35% to 25%. I am confident that this reduction would help softening of domestic prices of cement for the benefit of consumers.

136. Mr. Speaker, Sir, accredited pressmen and cameramen are allowed to import cameras, computers, fax machine etc. up to a value of one lakh rupees for their professional use without payment of customs duty once in five years. In view of many good photographs they have taken of use, I propose to reduce this long waiting period from five years to two years.

137. In order to encourage better quality of cinematography I propose to reduce the customs duty on cinematographic cameras, projectors and certain other related equipment used by the film industry from 25% to 15%.

138. In order to discourage smuggling I propose to reduce the duty on gold from Rs 400 per 10 grams to Rs 250 per 10 grams.

139. Several industry associations have pointed out that the CVD on the imported consumer products should also be charged on the basis of maximum retail price; otherwise it does not provide a level playing field. I accept the logic of their argument. The Finance Bill contains the enabling provision to implement this decision.

140. I propose to withdraw the exemption from customs duty on a few items and impose on them a nominal duty of 5%.