India is reviving a plan to scrap its mega power plant policy, imposing a 5% customs duty on the import of equipment that goes into thermal projects that will generate at least 1,000 megawatts (MW).
The government’s move is believed to be prompted by a desire to prevent the import of Chinese equipment.
To be sure, the move needs to be cleared by the cabinet and the rule will apply only to new projects with companies that have already placed orders with Chinese equipment makers being exempt.
“Tariff or custom duty exemption is only applicable for mega power projects. If this distinction is done away with, there is no difference between mega or non-mega. The imported equipment will be subjected to a 5% customs duty, 10% countervailing duty and special additional duty of 4%. There will be no distinction. Everyone will have to pay the same duty,” said a top power ministry official who did not want to be identified.
The mega power project status allows fiscal benefits to developers of thermal power plants of at least 1,000MW capacity, including a tax holiday for 10 years and a waiver from customs duty on equipment imports.
more at:
http://www.livemint.com/2011/09/28234423/Govt-may-levy-import-duty-on-p.html?h=B
Wednesday, September 28, 2011
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment