New Delhi: The Government has decided to exempt all customs duty on import of cotton to lower the price of cotton in the public interest. This exemption would benefit the textile chain- yarn, fabric, garments and made ups and provide relief to textile industry and consumers.
Industry has been demanding for removal of 5% Basic Customs Duty (BCD) and 5% Agriculture Infrastructure and Development Cess (AIDC) on raw cotton.
The Central Board of Indirect Taxes and Customs (CBIC) notified the exemption from Customs duty and Agriculture Infrastructure development Cess for import of cotton.
This notification shall come into effect from 14th April 2022 and will remain in force upto and inclusive of the 30th September 2022.
Removal of import duty on raw cotton should have salutary effect on cotton price in India.