A sample of sugar crystals are seen on the desk of a trader at a wholesale market in Kolkata. Photograph:( Reuters )
Finance minister Nirmala Sitharaman also removed dividend distribution tax on companies
Finance minister Nirmala Sitharaman in the Budget today announced increase in customs duty on imported wall fans, tableware and kitchenware.
The finance minister also proposed withdrawl of customs duty exemption on raw sugar, agro-animal based products, tuna bait, skimmed milk, certain alcoholic beverages, soya fibre and soya protein. The government also hiked customs duty on catalytic converters, parts of commercial vehicles excluding electric vehicles.
The increase in customs duty on wall fans was increased from 7.5 per cent to twenty per cent. The duty on tableware and kitchenware made of porcelain, copper, steel, clay iron was doubled to 20 per cent.
The minister also removed dividend distribution tax on companies.
"This is another bold move, which will further make India an attractive destination for investment," Sitharaman said.
"In order to increase the attractiveness of the Indian equity market and to provide relief to a large class of investors, I propose to remove the DDT and adopt the classical system of dividend taxation under which the companies would not be required to pay DDT," India's finance miniser added.
"Further, in order to remove the cascading effect, I also propose to allow deduction for the dividend received by holding company from its subsidiary. The removal of DDT will lead to estimated annual revenue forgone of Rs 25,000 crore," the minister said.