New Delhi, Feb. 29 : Union Finance Minister P. Chidambaram has proposed a reduction in the custom duty on crude and unrefined sulphur from five percent to two percent in order to support domestic fertilizer production.
The duty exemption on naphtha for use in the manufacture of polymers has been withdrawn and the normal rate of five percent customs duty has been imposed to remove distortions that arise due to its export from refineries and import by manufacturers of polymers.
However, naphtha imported for the production of fertilizers will continue to the exempt from import duty.