Govt removes import duty on 41 items effective today - Check full list of items here

The government on Thursday removed customs duty on the import of key petrochemical products to maintain stable supplies and ease the burden on consumers of finished goods amid the West Asia crisis.

This exemption, effective until 30 June, is expected to support industries that rely on petrochemical raw materials and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive parts, and other manufacturing sectors.

In a statement, the Ministry of Finance said that, in light of the ongoing conflict in West Asia and the consequent disruptions to global supply chains, the government has decided to provide full customs duty exemption on critical petrochemical products till 30 June.

"This measure has been taken as a temporary and targeted relief in order 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," it said.

These measures will also provide relief to consumers of final products, it added.

Check the list here

The list of exempted items includes key petrochemical inputs such as anhydrous ammonia, methanol, toluene, styrene, vinyl chloride monomer, monoethylene glycol (MEG), phenol, acetic acid, and purified terephthalic acid (PTA), among others.

In addition, several polymer categories are included in the exemption, including polyethylene, polypropylene, polystyrene, polyvinyl chloride (PVC), polyethylene terephthalate (PET) chips, and engineering plastics like acrylonitrile-butadiene-styrene (ABS) and polycarbonates.

Speciality chemicals and intermediates such as epoxy resins, polyurethanes, formaldehyde derivatives, and polyols have also been included in the exemption list.

Disruptions to shipping routes due to the West Asia conflict have heightened concerns about the import of fertilisers, crude oil, and natural gas, especially since India relies heavily on these supplies.

Global crude oil prices have surged by nearly 50% since the United States and Israel carried out military strikes on Iran on 28 February, prompting strong retaliation from Tehran.

In response, the government last week reduced excise duty on petrol and diesel by ₹10 per litre to protect consumers from rising global oil prices during the ongoing conflict.

It also introduced export duties of ₹21.50 per litre on diesel and ₹29.50 per litre on aviation turbine fuel (ATF).

Currently, excise duty on petrol stands at ₹3 per litre, while diesel is exempt from excise duty.

West Asia conflict -What's latest?

Earlier in the day, US President Donald Trump said US forces will keep hitting Iran “very hard” in the next two or three weeks and bring the country “back to the Stone Ages,” even as he touted the success of US operations and argued that all of Washington’s objectives have so far been met or exceeded, AP reported.

Trump said Iran would continue to face a barrage of attacks in the short term.

“We are going to hit them extremely hard over the next two to three weeks,” Trump said. “We’re going to bring them back to the Stone Ages, where they belong.”

Trump made no mention of negotiations with Iran or the 6 April deadline he had set for reopening the Strait of Hormuz, a key route for global oil and gas transport. He had warned of attacking Iran’s energy infrastructure if the strait remained closed.

He also did not outline any clear plan to resolve the supply disruptions that have pushed energy prices higher and refrained from discussing the deployment of US ground troops or involving NATO, the trans-Atlantic alliance he has criticized for not assisting in securing the waterway.

(With inputs from agencies)