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UNION BUDGET 2018-19 Highlights & provision for exports and chemicals sector
 
 

 

 

 

CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle 4th Fl., 7 Cooperage Road, Mumbai - 400 001.India.

Tel : +91 22 22021288 / * Fax : +91 22 22026684 *

E-mail : info@chemexcil.v.in Web : https://chemexcil.in



 February 2018

EPC/LIC/BUDGET/2018-19

 

ALL THE MEMBERS OF THE COUNCIL   

 

UNION BUDGET 2018-19

 

Highlights & provision for exports and chemicals sector

 

Dear Members,

 

As you are aware,  Hon’ble  Union Minister of Finance Shri Arun Jaitely has presented the Union Budget 2018-19 on 1st   February 2018. 

The budget 2018-19  lays focus on strengthening agriculture and rural economy, provision of good health care to economically less privileged, taking care of senior citizens, infrastructure creation and working with the States to provide more resources for improving the quality of education in the country.

Also  steps will be taken for  Ease of Doing business further by stress on 'Ease of Leaving' for the common men of this country, especially for those belonging to poor & middle class of the society. Good governance also aims at minimum interference by the government in the life of common people of the country.

 

The key economic indicators as per budget statement

 

  • GDP growth at 6.3% in the second quarter signaled turnaround of the economy.  The government estimates 7.2-7.5% GDP growth in second half of the current FY18.

  • India is today a $2.5 trillion economy and will become fifth largest economy in the world from the present seventh largest.

  • Fiscal deficit for 2017-18 at 3.5% and projected for 2018-19 at 3.3%

  • Our exports are expected to grow at 15% in 2017-18.

  •  Divestment target for 2018-19 has been set at Rs 80,000 crore

  • Proposed spending on rural infra is Rs 14.34 lakh crore.

 

Gist of  provisions  in Union Budget 2018-19 from exports and chemicals perspective. 

Medium, Small and Micro Enterprises (MSMEs)

  • Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17 

 

  • Provided Rs. 3794 crore to MSME Sector for giving credit support, capital and interest subsidy and innovations.

  • It is proposed to onboard public sector banks and corporates on Trade Electronic Receivable Discounting System (TReDS) platform and link this with GSTN. Online loan sanctioning facility for MSMEs will be revamped for prompt decision making by the banks. 

 

  • It is proposed to set a target of `3 lakh crore for lending under MUDRA for 2018-19 after having successfully exceeded the targets in all previous years.    

  • Use of Fintech in financing space will help growth of MSMEs. A group in the Ministry of Finance is examining the policy and institutional development measures needed for creating right environment for Fintech companies to grow in India.

 

Tax proposals

Health and Education Cess


At present there is a 3% cess on personal income tax and corporation tax consisting of 2% cess for primary education and 1% cess for secondary and higher education. The existing 3% education cess will be replaced by a 4% “Health and Education Cess” to be levied on the tax payable.

 

Indirect Tax.

 

  • To abolish the Education Cess and Secondary and Higher Education Cess on imported goods, and in its place impose a Social Welfare Surcharge, at the rate of 10% of the aggregate duties of Customs, on imported goods, to provide for social welfare schemes of the Government.  Goods which were hitherto exempt from Education Cesses on imported goods will, however, be exempt from this Surcharge.

  •  

CUSTOM TARIFFS

 


1.           

C.

Changes in Customs duty to provide adequate protection to domestic industry

 

 

 

Perfumes and toiletry preparations

 

 

 

9

3303

Perfumes and toilet waters

10%

20%

 

10

3304

Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or suntan preparations; manicure or pedicure preparations

10%

20%

 

11

3305

Preparations for use on the hair

10%

20%

 

12

3306

Preparations for oral or dental hygiene, including denture fixative pastes and powders; yarn used to clean between the teeth (dental floss), in individual retail packages

10%

20%

 

13

3307

Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included, prepared room deodorizers, whether or not perfumed or having disinfectant properties

10%

20%

 

 

 

 

 

 

II

Rationalization measures

 

 

 

Edible oils of vegetable origin

 

 

 

1

1508, 1509,
1510,1512,
1513, 1515

Crude edible vegetable oils like Ground nut oil, Olive oil, Cotton seed oil, Safflower seed oil, Saffola oil, Coconut oil, Palm Kernel/Babassu oil, Linseed oil, Maize corn oil, Castor oil, Sesame oil, other fixed vegetable fats and oils. 

12.5%

30%

 

2

1508, 1509,
1510,1512,
1513, 1515,
1516 20,
1517 10 21,
1517 90 10,
1518 00 11,
1518 00 21,
1518 00 31

Refined edible vegetable oils, like Ground nut oil, Olive oil, Cotton seed oil, Safflower seed oil, Saffola oil,  Coconut oil, Palm Kernel/Babassu oil, Linseed oil, Maize corn oil, Castor oil, Sesame oil, other fixed vegetable fats and oils, edible margarine of vegetable origin, Sal fat; specified goods of heading 1518

20%

35%

 

 

  • Amendments in Custom Act for Trade Facilitation / dispute resolution.

To make certain changes to the Customs Act, 1962, to further improve ease of doing business in cross border trade, and to align certain provisions with the commitments under the Trade Facilitation Agreement. To smoothen dispute resolution processes and to reduce litigation, certain amendments are being made, to provide for pre-notice consultation, definite timelines for adjudication and deemed closure of cases if those timelines are not adhered to.

 

  • To change the name of Central Board of Excise and Customs [CBEC] to Central Board of Indirect Taxes and Customs (CBIC).

  •  

You are requested to take note of the above provisions.  The original budget documents/ notifications are available for download using below link-


http://www.indiabudget.gov.in/ub2018-19/bs/bs.pdf
http://www.indiabudget.gov.in/cust.asp
http://www.indiabudget.gov.in/ub2018-19/cen/dojstru1.pdf
http://www.indiabudget.gov.in/ub2018-19/cen/dojstru2.pdf

 

We also look forward to your feed-back on the provisions of the Union Budget 2018-19.  The same can be mailed to us  on  ed@chemexcil.gov.in  & Deepak.gupta@chemexcil.gov.in  .

 

Thanking You,



Yours faithfully,



S.G Bharadi
Executive Director
CHEMEXCIL

 

 

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