LPG Cylinder Custom Duty: The central government has drastically increased the basic custom duty levied on domestic LPG cylinders. It has been increased from 5 percent to 15 percent directly. On top of this, now Agriculture Infrastructure and Development Cess (AIDC) will also be imposed. Agriculture Cess of 15% will be levied on the import of LPG cylinders.
who got relief
Custom duty will be nil on import of LPG sold to domestic customers by oil marketing companies owned by central and state governments. However, for other importers or importers who import domestic LPG, the rate of basic custom duty will remain at 15 percent.
Big decision for domestic oil marketing companies
However, there is a relief with this that the government has decided that no basic custom duty will be imposed on liquefied propane, liquefied butane and mixture of liquefied butane with liquefied propane. This is news of relief for domestic consumers of Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL). According to the notification issued by the Indian Direct Taxes and Customs, this information has been received.
This step will protect the interests of domestic customers – Government
Petroleum Department and tax officials say that this step of the government will protect the interests of domestic customers and along with it will also help in reducing the cost of imports. Significantly, there is a shortage of production of cooking gas or LPG in India and the country is largely dependent on countries like Saudi Arabia for its import.
No change in LPG prices on July 1
On July 1, new rates of LPG cylinders were released, in which no changes were made. The prices of 14.2 kg LPG cylinder and 19 kg commercial cylinder have been kept unchanged. In the capital New Delhi, the price of LPG cylinder for kitchen use remains at Rs 1103 and the price of commercial use cylinder at Rs 1773.
