Budget 2016: Import duty on medical devices raised

The customs department has raised import duty on medical devices used for surgical, dental and veterinary use from the current five percent to 7.5 per cent (increase of 2.5 percentage points) to help companies manufacture these products in India itself. The move would help Make in India programme in these items.

The step came over a month ahead of the Business Standard Budget 2016-17, expected to be tabled in Parliament on February 29.

Besides, the government imposed special additional duty on these items of four per cent by withdrawing exemptions, a statement by the finance ministry said on Tuesday.

Also, basic customs duty will be reduced to 2.5 per cent on raw materials, parts and accessories of these items.

The steps would help companies such as Siemens which are into production of medical devices, besides smaller doemstic companies.