Union Budget 2012-13: LNG imports exempted from customs duty

Finance Minister Pranab Mukherjee announced the exemption of custom duty from LNG imports while presenting the Union Budget 2012-13 on Friday, 16th March 2012. Presently, the custom duty for LNG export is 5 percent.

During his speech he said that, Oil and Natural gas sector is one of the important sector of economy that influences all other sectors and the government is working hard for the deregulation of diesel prices.

The thermal power producers are facing extreme pressure in production due to increased price of coal and hence to provide them ease, the exemption has been made from customs duty. In addition to that, a one percent concession on CVD on steaming coal has been provided for a period of two years.

Moreover, many power plants fuels including natural gas and Liquified Natural Gas (LNG), uranium concentrate, sintered uranium dioxide in natural and pellet form have been exempted fully from the basic duty.

In addition to that, an additional depreciation of 20 per cent will be provided in the initial year a newly acquired new asset by power generation companies.

The last date for power generating projects to seek tax holiday has also been extended by one more year till March 31, 2013.