NITI Aayog favours SINGLE Custom Duty rate of 7% in 3 yrs
By TIOL News Service
NEW DELHI, SEPT 04, 2017: THE Three-Year Action Plan prepared by the NITI Aayog has called for unifying all Customs duties at 7%. It states that such a single rate would effectively address the general complaint about the inverted duty structure and would also buoy up the tax collections.
NITI Aayog has put emphasis on improving procedures for Customs clearances. It states that it will reduce transaction costs and improve the ease of doing business. A single-window for customs clearance (SWIFT) is required to be extended to all partner government agencies with provision for a facility to upload supporting documents/licenses/permits on SWIFT. Moreover, Govt needs to introduce SWIFT for export clearances.
It has recommended that for efficient operations, every port should have container scanners- mobile/fixed, X-ray/drive-through. They should also have hand-held devices like tablets/personal radiation detectors/radionuclide identification devices at sheds/factories to tag each container. Duty exemption should be given to exporter upon declaration with enforcement done through ex post random checks. Under the current system, delays in drawbacks are endemic and administrative procedures so burdensome that many exporters simply forgo the exemption, it adds.
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