Govt cuts down duty on lab chemicals to 10% from 150%

Duty cut on lab chemicals: The Finance Ministry has reduced the customs duty on lab chemicals, excluding undenatured ethyl alcohol, to 10 per cent from the previous 150 per cent, as announced in the 2024-25 Budget.

According to a notification by the customs department, the basic customs duty (BCD) on lab chemicals (excluding undenatured ethyl alcohol of any alcoholic strength) for use in laboratories and for Research & Development purposes has been reduced to 10 per cent.

Previously, as a trade facilitation measure, the customs department imposed a 10 per cent import duty on lab chemicals imported in packings not exceeding 500 ml or 500 gm, meant solely for use as laboratory chemicals.

Officials noted that some importers were circumventing the 150 per cent duty on undenatured ethyl alcohol by falsely declaring it as lab chemicals. To prevent this misuse, the BCD on lab chemicals was increased to 150 per cent in the 2024-25 budget.

However, to address the concerns of genuine users, the BCD on lab chemicals, excluding undenatured ethyl alcohol of any alcoholic strength, for use in laboratories and for Research & Development purposes has been reduced to 10 per cent, effective August 1, 2024. 

(With PTI inputs)