Basic customs duty on domestic LPG raised to 15%

The government has raised the basic customs duty on domestic LPG to 15% from 5%. Basic customs duty will be ‘nil’ for the import of domestic LPG to be sold to household consumers. 

Image Source: PTI

The Union Government has raised the basic customs duty for Liquefied Petroleum Gas (LPG). The basic customs duty on domestic LPG has been increased from 5% to 15%. 

The Central Government has also imposed an Agriculture Infrastructure and Development Cess (AIDC) of 15% on the import of LPG cylinders. The new rates will be effective from July 1.

In a notification, the Central Board of Indirect Taxes and Customs said that an increase in basic customs duty will not be applicable to imports of liquefied propane, liquefied butane and mixture of liquefied propane and liquefied butane by Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd, for supply to domestic household consumers.  

The basic customs duty will remain ‘nil’ for the import of domestic LPG, sold by state-owned oil marketing companies to household consumers. The customs duty rate will be 15% for other importers of domestic LPG.

The production of cooking gas or LPG in India is less, therefore it is dependent on imports from countries like Saudi Arabia.

The step taken by the Government will not only reduce the import bills but will also protect the domestic consumers.