Exemption from Additional Customs Duty in lieu of Sales Tax/VAT for Acetate Tow
ACETATE Rayon Tow falling under Chapter 5502 00 10 of Customs Tariff Act, 1975, required for manufacture of cigarette filter rods is exempted from additional customs duty leviable under Section 3(5) of Customs Tariff Act, 1975, if the importer follows the procedure prescribed under IGCRDMEG, Rules, 1996.
When the excise duties were increased on cigarettes during the Budget, smokers felt pinched with the increase in price of cigarettes. Since it was only a pinch, smokers continued to smoke despite the pinch. Now will the cut in duty rates on acetate rayon tow reduce the price of filter cigarettes? Let's wait and see.
Notification No. , Dated: April 29, 2010