Consultant picture. |Photograph courtesy: Getty Photos/iStockphoto
The federal government on Thursday (April 2, 2026) exempted imports of crucial petrochemical merchandise from tariffs to make sure safety of provide and supply aid to end-product shoppers amid the West Asian disaster.
The tax exemption might be legitimate till June 30 and can profit sectors that depend on petrochemical uncooked supplies and intermediates, together with plastics, packaging, textiles, prescribed drugs, chemical substances, auto elements and different manufacturing sectors.
In a press release, the Ministry of Finance introduced that in mild of the continuing battle in West Asia and the ensuing disruption to international provide chains, the federal government has determined to totally waive tariffs on crucial petrochemical merchandise till June 30.
“This motion has been taken as a short lived and focused aid measure to make sure the continued availability of crucial petrochemical feedstocks for home business, scale back price strain on downstream sectors, and shield home provide safety,” the ministry stated.
This can even present aid to shoppers of the ultimate product, it added. Merchandise exempt from responsibility embrace methanol, anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, polybutadiene, styrene-butadiene, and unsaturated polyester resins.
Issues have been raised about imports of fertilizer, crude oil and pure gasoline as a result of disruption of sea routes through the West Asia warfare. India is a serious importer of fertilizers and oil.
International oil costs have risen by virtually 50% since the USA and Israel launched army strikes in opposition to Iran on February 28, triggering widespread retaliation by the Iranian authorities.
The federal government final week minimize excise responsibility on petrol and diesel by Rs 10 per liter and imposed export duties of Rs 21.50 per liter on diesel and Rs 29.50 per liter on aviation turbine gasoline (ATF) to guard shoppers from the affect of hovering international oil costs amid the continuing warfare. Excise responsibility on petrol has been decreased to ₹3 per litre, whereas excise responsibility on diesel is now zero.
