No change in imported coal tariffs due to Agriculture Infrastructure Development cess: Experts

There will be almost no change in the tariffs on imported coal on account of the proposed Agriculture Infrastructure Development cess levied by the government on items like coal and lignite, as per industry experts.

In her budget speech finance minister Nirmala Sitharaman said that basic customs duty (BCD) rates have been reduced on items such as coal lignite and peat with the imposition of Agriculture Infrastructure and Development Cess on these so that overall the consumer does not bear additional burden on most of the items.

“Infra Dev Cess in place of a reduction in basic custom duty of coal will ensure that there is no net change on the tariffs applicable on imported coal,” Niladri Bhattacharjee, Partner -Metals & Mining, KPMG said.