National Calamity Contingent Duty (NCCD) is a duty of excise imposed on certain goods manufactured or produced in India. It is a surcharge levied on top of other duties of excise and is collected for the Union.
The duty was introduced in 2001 under the Finance Act and is levied on goods specified in the Seventh Schedule, which includes pan masala, tobacco products, cigarettes, cellular phones, and other goods.
The specific aim of the National Calamity Contingent Duty (NCCD) is to fund the National Disaster Response Fund (NDRF). This levy is imposed to provide additional budgetary support during times of disaster and contribute to relief efforts.
The NDRF plays a crucial role in disaster management and response, helping affected communities and regions recover from natural calamities. By collecting the NCCD, the government ensures that resources are available to address emergencies promptly and efficiently.
NCCD on tobacco products is levied at a rate of Rs 10 per thousand (number of products). However, the rate of NCCD on specified tobacco products such as cigarettes was revised upwards by about 16% in the Union Budget 2023-24.
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