News

Government withdraws 150% import duty on lab chemicals

India’s Biotech industry heaved a sigh of relief after the government withdrew on July 31, 2024 the unusually high customs duty imposed on laboratory chemicals imported under the HS Code 9802 announced in the Union Budget for 2024-25 presented to the LoK Sabha on July 23,2024.

When alerted by the members, ABLE immediately took up the matter with the government, sending representation to the Department of Biotechnology, Dr Rajesh S Gokhale, Union expenditure secretary, Mr Sanjay Malhotra and the Chairman of the Central Board of Direct and Indirect Taxes.

In the letter to the government, ABLE president Mr G S Krishnan pointed out that the sudden increase from 10% to 150% customs duty key chemicals used for research purposes in biotech research centers in the private and public sector laboratories will cripple the innovation work.

The country had imported laboratory chemicals values at approximately $ 80 million in 2023. Only a third of the nation’s requirement of these specialty chemical that are vital in biotech research work are produced in the country. Rest are imported.

These specialty chemicals are imported in package sizes less than 500 ml or grams. Buyers also pay an 18% GST if bought from local importers.

National research laboratories too had referred to the increase that would reduce their research budgets significantly.

ABLE thanks the Finance Ministry for the prompt action to withdraw the increase in the customs duty. In the notification issued on 31st July after ABLE’s appeal, the ministry reverted to the original 10% duty on all lab chemicals except ethyl alcohol.

Recommended News

Archives