Govt of India may extend import duty exemption on 40 petrochemical products beyond June 30

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NEW DELHI : The Government is likely to decide soon on whether to extend the import duty exemption on around 40 critical petrochemical products beyond June 30, with the final call expected after assessing the evolving situation in West Asia and its impact on trade routes and revenue collections.

The Centre had announced a temporary customs duty exemption on key petrochemical imports from April 2 to shield domestic industries from supply chain disruptions triggered by geopolitical tensions in West Asia.

Under the measure, customs duty was reduced to nil on 40 items, including Anhydrous Ammonia, Toluene, Styrene, Vinyl Chloride Monomer and several other petrochemical inputs.

The exemption, valid until June 30, was aimed at supporting industries that rely heavily on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing sectors.

Officials said the revenue impact of continuing the exemption would also be a key factor in the government’s decision-making process.

“A decision would be taken after analysing the evolving situation around West Asia and cargo movement via Strait of Hormuz,” the official told PTI.

Among the items covered under the duty waiver are Methanol, Anhydrous Ammonia, Toluene, Styrene, Dichloromethane (Methylene Chloride), Vinyl Chloride Monomer, Poly Butadiene, Styrene Butadiene and Unsaturated Polyester Resins.

The government has set a customs revenue target of Rs 2.71 trillion to the current fiscal year, higher than the Rs 2.64 trillion collected in FY26.

The conflict in West Asia and the efficiently blockade of the Strait of Hormuz have pushed up prices of crude oil, food and fertiliser imports. The disruption has also affected supplies of key raw materials, with cargo movement through the strategic maritime route witnessing a significant decline.

Source : PTI

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