Govt. may raise import duties by 5-10%

Govt. may raise import duties by 5-10%

Context:

India is considering raising import duties by 5%-10% on more than 50 items including smartphones, electronic components and appliances in the upcoming budget.

Details:

• The move to increase import duties is part of Prime Minister’s self-reliant India campaign.
  • The Atmanirbhar Bharat (self-reliant India) campaign aims to promote and support domestic manufacturing.
• Sources said that the government was seeking to target additional revenue of about ₹200 billion to ₹210 billion, to boost the revenue amid the COVID-19 pandemic.
• The government says that such taxes are essential to promote India as a destination for local manufacturing and to support domestic businesses.
• In 2020, India raised duties on a range of products such as footwear, furniture, toys, electrical and electronics items by up to 20%.

Note:

Finance Minister Nirmala Sitharaman will unveil the budget on February 1^st 2021 in the shadow of a projected economic contraction of 7.7% for the current fiscal year.