Budget 2021: Govt might tweak customs duties on a number of items

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India’s most-awaited price range is only a week away. Finance minister Nirmala Sitharaman will unveil the Budget 2021-22 on February 1. Meanwhile, sources have advised PTI that the federal government might tweak customs duties on a number of items to advertise home manufacturing and exports.

These items might embrace furnishings uncooked supplies, copper scrap, sure chemical substances, telecom gear and rubber merchandise. Sources stated that whereas import duties may very well be hiked on over 20 merchandise reminiscent of reduce and polished diamonds, rubber items, leather-based clothes, telecom gear and carpet, the customs duties may very well be eliminated on choose uncooked supplies (like wooden in tough, swan wooden and onerous board) used for furnishings manufacturing and copper focus.

“Expensive raw materials impact India’s price competitiveness in the international market. The country’s exports of furniture is very low (about one per cent), while countries like China and Vietnam are major players in the sector,” sources stated.

Last yr, the federal government elevated import taxes on a number of merchandise reminiscent of furnishings, toys, and footwear.

Customs duties could also be lowered on this stuff

The authorities might also think about decreasing customs duties on coal tar pitch, and copper scrap, whereas elevating the levies on sure completed items like fridge, washer and garments dryer, one of many sources stated.

The authorities is already taking steps to spice up home manufacturing reminiscent of introduction of production-linked incentives scheme (PLI) for a number of sectors together with air conditioners and LED lights.

“Tweaking of duties on these goods would help promote self-reliant India campaign and boost domestic manufacturing,” sources added. (With PTI inputs)

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