In order to boost localization, the government in the recent budget has levied extra duties on imported goods especially from China. It is aimed to further strengthen the ‘Make In India’ initiative and create more employment opportunities.
Crux of the Matter
Ministry claims to have taken this decision in order to benefit the Indian MSME sector as this labor-intensive sector is extremely important for employment generation.
The government will now set provisions for checking the dumping of items and imports are additionally being bolstered. The price of imported day-to-day-use items like walnuts, peanut butter, shavers, hairdryers, kitchenware, shoes, kids toys, electric autos & two-wheelers is set to rise due to hike in the customs duty.
A slight increase in the price of refrigerators, washing machines, and air-conditioners is to be expected as the duty on these products has been increased by about 2-3%.
Large corporations are not very happy with the hike in the customs duty of electrical vehicles.
Chairman of Bajaj Electricals Shekhar Bajaj said, “this move will prevent the dumping of goods by China because of US sanctions.”Panasonic India MD Manish Sharma said, “the products like hairdryer, shavers, and trimmers may also now be made in India as corporations accumulate steps to cut charges.”
Curiopedia
Custom duty is the indirect tax levied on the import or export of goods in international trade. In an economic sense, a duty is also a kind of consumption tax. A duty levied on goods being imported is referred to as import duty. Similarly, a duty levied on exports is called an export duty. A tariff, which is actually a list of commodities along with the leviable rate (amount) of customs duty, is popularly referred to as a customs duty. Customs duty is calculated on the determination of the assessable value in case of those items for which the duty is levied ad valorem. For certain items like petroleum and alcohol, customs duty is realized at a specific rate applied to the volume of the import or export consignments. More Info
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