Government hikes wheat import duty to 25%

Government today announced an increase in import duty on wheat from 10 per cent to 25 per cent with immediate effect in view of the continued fall in international prices of wheat and the anticipated adverse impact of increased imports during the first half of this financial year.

An official notification issued today said the increase in basic customs duty on wheat from 10 per cent to 25 per cent will be effective for a period up to 31 March 2016.

In another notification, issued today, the finance ministry said RBD Palm Stearin, Methanol and Sodium Methoxide are chargeable to central excise duty leading to CENVAT credit accumulation. Specified biodiesel, for which these are used as inputs, however, is exempt from central excise duty.

Central excise duty has been exempted on RBD Palm Stearin, Methanol and Sodium Methoxide used in the manufacture of such biodiesel subject to actual user condition for a period up to 31 March 2016.

Meanwhile, the finance ministry will be holding interactive meetings with foreign portfolio investors (FPIs) and domestic financial market participants as part of the government's endeavor to improve ease of doing business in financial markets

Department of Economic Affairs of the finance ministry is organising two interactive meetings with FPIs and domestic financial market participants in New Delhi. The meeting with FPIs is scheduled to be held tomorrow (Tuesday) while the meeting with domestic financial market participants and stock exchanges will be held on Wednesday. The meetings would also be attended by representatives of RBI, SEBI and CBDT among others.

The meeting with FPIs would include discussion on simplifying the procedures and documentation for registration of FPIs, development of fund management industry in India and FPI investment in corporate bond market. The meeting with domestic market participants would include discussion on integration of various segments of the market, increasing retail participation and deepening of corporate bond market.
 
Foreign investors and domestic market participants would raise various issues of interest to them as part of this consultation exercise.