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Ambarish Mukherjee

Duty may be reduced to 8% from existing 16%

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New Delhi Feb. 16 The Union Budget for 2006-07 is likely to focus on bringing down costs of farming inputs in line with the promises made in the National Common Minimum Programme. Following recommendations made by the Ministry of Chemicals and Petrochemicals, the Finance Ministry is currently examining the possibility of reducing the cost of pesticides through concessions in excise duty.

However, while other farming inputs such as fertilisers and seeds are completely exempted from paying excise duty the Government is not planning to exempt the pesticide sector fully, sources said.

The proposal under consideration is to reduce the excise duty on pesticides from the existing 16 per cent to 8 per cent, sources said.

The Ministry of Chemicals and Petrochemicals, following representations made by the Pesticide Manufacturers and Formulations Association of India, has recommended a reduction of excise duty on pesticides on the ground that pesticides are critical inputs for agriculture and public health.

Plastics & polymers: The Finance Ministry is also examining a duty cut on polymers and plastic processed articles from the existing 16 per cent to 8 per cent following recommendations from the Ministry of Chemicals and Petrochemicals.

The move, sources said, would impact the household sector where plastic processed articles such as furniture and fittings, windows, frames would come cheaper.

The other sectors where plastic processed articles are used extensively, including agriculture, water management and horticulture, would benefit too, in terms of lower costs, sources said.

More Stories on : Pesticides | Budget | Excise and Customs

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