Part shifting of customs duty to AIDC to have marginal impact on state transfers: CBIC Chairman

PTI New Delhi

CBIC Chairman Sanjay Kumar Agarwal on Thursday said the part shifting of the basic customs duty to AIDC will only have a marginal impact on transfers to states as the total sum involved would be about Rs 4,000 crore across 30 states.

 In the Budget for 2025-26, the government has rationalised basic customs duty rates, slashing the number of levies to just eight, but has kept the effective duty rates on most items the same by adjusting cess to further ease of doing business. Finance Minister Nirmala Sitharaman removed seven tariff rates in the 2025-26 Budget. This is over and above the seven tariff rates removed in the 2023-24 Budget.

After this, there will be only eight remaining tariff rates, including 'zero' rate to further ease of doing business. Economic think tank Global Trade Research Initiative (GTRI) has said the Budget has reinforced a fiscal strategy the government has followed since 2021-22, reducing basic customs duty (BCD) while increasing the agriculture infrastructure and development cess (AIDC).