The Union Budget announced Import Duty on Coal will remain same. Clean Energy Cess increased by INR 200/MT in FY17.
The annual budget for coal came as anticipated before by numerous, as introduced custom duty remain same on all types of imported coal. Import duty continuous to be same at 5% on imported Met coke. The duty on anthracite, bituminous and steam coal will be unchanged to 2.5% from previous levels of 2.5% in FY16.
Earlier in Budget FY16 the Ministry proposed to rationalize the duty structure on all non-agglomerated coal at 2.5% basic customs duty and 2% CVD, which will be continue in FY17 also.
| Grade | Basic Custom Duty | CVD | ||||||
| FY14 | FY15 | FY16 | FY17 | FY14 | FY15 | FY16 | FY17 | |
| Coking Coal | Nil | 2.5% | 2.5% | 2.5% | 6% | 2% | 2% | 2% |
| Steam Coal | 2% | 2.5% | 2.5% | 2.5% | 2% | 2% | 2% | 2% |
| Bituminous Coal | 2% | 2.5% | 2.5% | 2.5% | 2% | 2% | 2% | 2% |
| Met Coke | Nil | 2.5% | 5.0% | 5.0% | 2% | 2% | 2% | 2% |
Although in this fiscal, Union finance minister Arun Jaitley announcement Green Energy Cess levied on coal to double to INR 400/MT from INR 200/MT in last fiscal.
[su_quote]”I propose to rename the Clean Energy Cess levied on coal, lignite and peat as Clean Environment Cess and simultaneously increase its rate from INR 200/MT to INR 400/MT,” Finance Minister Arun Jaitley said in his Budget speech for 2016-17 in the Lok Sabha.[/su_quote]
However, also Basic custom duty on all given products proposes to rationalize in FY17 budget.
| BCD Rationalized on | Existing | Proposed |
| 1. Coal; briquettes, ovoids and similar solid fuels manufactured from coal | 2.5% / 10% | 2.5% |
| 2. Lignite, whether or not agglomerated, excluding jet |
10% | 2.5% |
| 3. Peat (including peat litter), whether or not agglomerated |
10% | 2.5% |
| 4. Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon | 5%/10% | 5% |
| 8. Pitch and pitch coke, obtained from coal tar or from other mineral tars |
5%/10% | 5% |
Leave a Reply