Connect with us


Defence Ministry May Retain Exemptions On Imports Of Defence Goods



In order to shift the burden of fiscal deficits, the Defence Ministry may restore the customs import duty exemptions on defence goods and services. These exemptions were not part of the union budget for 2016-17.

A Finance Ministry official said that his ministry had agreed to the Defence Ministry’s plea that the 16 percent import duty on defence goods and services be withdrawn as the duty component was being spent out of the latter’s budgetary allocation, and hence the national exchequer. He said in high-value acquisitions, foreign vendors quoted the basic price in the tenders, leaving the customs duty burden on the Defence Ministry. “It was resulting in an annual outgo of Rs 7,000 to Rs 8,000 crore,” he replied.

In 2018, the Defence Ministry had recommended refund of payments in order to fully utilise its annual outlay for more purchases of actual goods and services. However, this was not accepted by the Finance Ministry as 40 percent of the collected revenue had been shared with the states.

“The only option before us is to discontinue the customs duty imposition in this Budget,” said the Finance official. A proposal to bring back the customs duty exemption would be placed before the Cabinet for approval, he added.

In Union Budget for 2016-17, Finance Minister Arun Jaitley had announced the withdrawal of customs duty exemption on direct imports of defence goods to promote local manufacturing under ‘Make In India’ programme.

He also withdrew basic customs duty exemption on military equipment and stores imported by contractors of government-controlled public sector undertakings (PSUs) or sub-contractors of such PSUs for defence purposes.

India’s 60 percent of defence requirements, especially core purchases are met through imports.

More News at EurAsian Times




sukhoi-su-35 sukhoi-su-35
Featured3 hours ago

Setback For Su-30 As Russian Su-35 Jet Shoots It Down After An Intense Dogfight

In a bizarre incident that happened over the Russian skies on Tuesday, a Russian Su-35S fighter jet reportedly shot-down Su-30SM...

Gangayaan-ISRO Gangayaan-ISRO
Featured4 hours ago

ISRO’ Satellite Communications Attacked By Chinese Hackers – CASI Report

While concerns over China’s increasing space warfare capabilities have been highlighted in a recent Pentagon report, another U.S. think-tank has...

Featured6 hours ago

India Tests Powerful Short Range Prithvi-II Missile Amid Soaring Tensions With China, Pakistan

The Defence Research and Development Organisation (DRDO) of India has successfully test-fired the indigenous Prithvi – II missile, the third...

jet jet
Europe6 hours ago

Doors Still Open For India To Co-Develop ‘Tempest’ Sixth-Gen Fighter Jet With The UK

In 2007, India and Russia had agreed to jointly build a fifth-generation fighter jet called Sukhoi/HAL Fifth Generation Fighter Aircraft (FGFA)...

rafale-jets rafale-jets
Featured11 hours ago

36 More Rafales: France Wants India To Order More Rafale Jets For DRDO To Acquire Aero-Engine Tech?

As Indian netizens have widely celebrated the arrival of 4.5 generation Rafale jets and the Indian media threatening Pakistan and...

dalai-lama dalai-lama
Americas12 hours ago

After Xinjiang, China Pushing Tibetans Into Forced Labour, Re-Education Camps

China is allegedly pushing Tibetans into military-style labour camps similar to the ones in Xinjiang, according to a Reuters report....

Saudi-Israel Saudi-Israel
Featured21 hours ago

Saudi Arabia Fully Supports US’ Efforts To Get Israel, Palestine On Negotiating Table – King Salman

King Salman bin Abdulaziz on Wednesday said that Saudi Arabia supports Washington’s efforts to bring the Palestinian and Israeli sides...

Americas21 hours ago

Pentagon Blew COVID-19 Funds To Buy Military Equipment; ArcelorMittal, Rolls-Royce Awarded Big Contacts

Pentagon blew up $1 billion appropriated for the pandemic by the Congress to finance military equipment including jet engine parts,...

Featured1 day ago

Afghan Top Negotiator Abdullah Abdullah To Visit Pakistan To Discuss Afghan Peace Process

The top Afghan peace negotiator – Abdullah Abdullah is in talks with the Taliban and could travel to Pakistan next...

s400-russia s400-russia
Featured1 day ago

British & NATO Jets Jamming The Radars Of Powerful S-400 Systems – Russian Experts

The stealth-hunting S-400 surface-to-air-missiles are the most advanced long and medium-range surface-to-air missile systems currently being operated by Russia, China,...