Kelkar pitches for two-rate customs duty

The taskforce on indirect taxes has recommended a two-rate customs duty structure by 2004. The two rates suggested by the taskforce headed by adviser to finance minister Vijay Kelkar, are 10 per cent for raw materials and intermediates, and 20 per cent for finished goods. The taskforce finalised its consultation paper as a prelude to its report and made a presentation before Finance Minister Jaswant Singh on Friday.

The report is due for submission by November-end, said an official release, adding the consultation paper, which has been framed after discussions with trade and industry, individual tax-payers, tax administrators and tax experts, contains recommendations which will help both tax-payers and administrators.