Highlights of the Union Budget for 2017-18

Circular No. ES/291/2016-17 February 01, 2017

To : Members of the Council

Sub : Union Budget for 2017-18

Dear Sir,

The Council is glad to inform you that the Government has announced the Union Budget for 2017-18 on 1^st February, 2017. We are sending herewith the Highlights of the Union Budget 2017-18 (download) for your reference and information.

The Union Budget has made the following changes with relevance to Textiles:

Basic Customs Duty on Nylon Monofilament yarn falling under Customs Tariff Item 5404 19 90 for use in Monofilament long line systems for tuna fishing is being reduced from 7.5% to 5%, subject to certain conditions. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide notification No.6/2017- Customs, dated 2nd February, 2017 [new S. No. 294A]

(viii) after serial number 294 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

(1)	(2)	(3)	(4)	(5)	(6)
“294A	5404 19 90	Monofilament yarn	5%	-	29A”;

The D.O. Letter from Joint Secretary (TRU-I) contains Annex III giving by clarification by Central Excise on issues related to goods produced or manufactured by Export Oriented Units [EOUs] units and cleared to domestic tariff area [DTA]
The Union Budget Grant Estimate for the Ministry of Textiles for 2017-18 is Rs. 6226.50 (crore) compared to 2016-2017 being Rs. 4594.82 (crore).
The Budget Allocation for the Amended Technology Upgradation Fund Scheme(ATUFS) was Rs. 1480 (crore) in 2016-2017 which has now increased to Rs. 2013 (crore) in 2017-18

PROPOSALS INVOLVING CHANGE IN DUTY / TAX RATES:

CUSTOMS:

		Commodity	Rate of Duty
			From	To
		Textiles
		Nylon mono filament yarn for use in monofilament long line system for Tuna fishing, subject to certain specified conditions	BCD – 7.5%	BCD – 5%
III.	Improving ease of doing business and Export Promotion
	28	De-minimis customs duties exemption limit for goods imported through parcels, packets and letters	Duty payable not exceeding Rs.100 per consignment	CIF value not exceeding Rs.1000 per consignment

EXCISE:

		Commodity	Rate of Duty
			From	To
II.		Incentivizing domestic value addition, ‘Make in India’
	A.	Renewable Energy
	8	All items of machinery required for balance of systems operating on biogas/ bio-methane/ by-product hydrogen	12.5%	6%

The complete Union Budget 2017-18 can be viewed by following this link http://indiabudget.gov.in/

We request you to please send us your suggestions / views on the Budget provisions by at the earliest so that the same can be included in the Post Budget Memorandum which the Council will be shortly forwarding to the Government.

Thanking You,

V.ANIL KUMAR
EXECUTIVE DIRECTOR