The customs duty exemption on critical petrochemical products is expected to have a revenue implication of Rs 1,800 crore, according to the Department of Revenue's estimates.
“These are very broad-based exemptions which is on critical supplies to the domestic industry. But if I go by past data, the revenue implication for three months would be around Rs 1,800 crores,” said an official from the Central Board of Indirect Taxes and Customs (CBIC) on Thursday.
Amid the ongoing conflict in West Asia and the consequent disruptions in global supply chains, the Government of India announced to provide full Customs Duty exemption on critical petrochemical products till June 30, 2026. The move aims to ensure continued availability of critical petrochemical inputs for the domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country.
The announcement came a day after the Ministry of Finance announced duty benefits for special economic zones (SEZs). As a one-time move, India has allowed SEZ units to increase sales in the domestic market with marginal customs duty concessions, in a move aimed at supporting exporters grappling with weak global demand.
CBIC further confirmed that the Ministry of Commerce will come up with further export incentives to help Indian exporters to cope up with the ongoing turmoil.