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CHEMEXCIL
BASIC CHEMICALS, COSMETICS & DYES EXPORT PROMOTION COUNCIL
(Set-up by Ministry of Commerce, Govt. of India)
Jhansi Castle, 7, Cooperage Road, Mumbai - 400 001.
Tel : 22021288, 22021330, Fax : +91 22 22026684
E-mail : info@chemexcil.gov.in, Website : chemexcil.in
EPC/LIC/BUDGET /2016-17 29 th February 2016
ALL MEMBERS OF THE COUNCIL
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UNION BUDGET 2016-17: Highlights & provision for
exports and chemicals sector
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Dear Members,
As you are aware, the Hon’ble Union Minister of Finance Shri Arun Jaitely has presented the Union Budget 2016-17 on 29 th February 2016.
The Union Budget 2016-17 has proposed several new rural aid schemes, steps to boost MSME’s & start-ups, sops for small tax-payers, measures for banking sector, etc. The key economic indicators are per budget statement are as follows:
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Indian Economy holds its ground firmly despite the global economic slowdown and hailed as a bright spot amidst global slowdown.
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GDP has witnessed growth from 6.3% to 7.6%; Inflation goes down below 5.4%.
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Forex reserves go up to $350 billion.
For the convenience of the members, given below is gist of provisions in Union Budget 2016-17 f rom exports and chemicals perspective.
Custom Duty changes in Chemicals and Petrochemicals
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Sr no.
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items
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Existing rate
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Proposed rate
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1
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BCD on all acyclic hydrocarbons and all cyclic hydrocarbons [other than para-xylene which attracts Nil BCD and styrene which attracts 2% BCD] being rationalized.
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5%
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2.5%
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2
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BCD on denatured ethyl alcohol (Ethanol) being reduced, subject to actual user condition.
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5%
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2.5%
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3
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SAD on Orthoxylene, being reduced, for the manufacture of phthalic anhydride subject to actual user condition
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4%
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2%
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4
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BCD on electrolysers, membranes and their parts required by caustic soda/potash unit using membrane cell technology being exempted.
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2.5%
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NIL
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Budgetary provisions for exports sector:
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As far as improving export infrastructure is concerned, the budget aims at measures for modernising the ports and improving efficiency. Sagarmala project has already been rolled out and there are plans to develop new green field ports both in eastern and western coast of the country. Sufficient funds are also being allotted for water, highways etc.
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You are requested to take note of the same. The major highlights of the budget 2016-17 are available in the attached file for your ready reference.
Thanks and regards,
S.G Bharadi
Executive Director
CHEMEXCIL
Encl : bh1
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