Import Duty Hiked on 19 items Including ACs, Fridges to Curb Current Account Deficit
New Delhi: A range of imported products including air conditioners, household refrigerators, washing machines, and radial car tires will get costlier with the government on Wednesday hiking the basic customs duty in a bid to curb the import of non-essential items to check the burgeoning current account deficit. A notification that will be effective from the midnight of Wednesday was issued by the Revenue Department hiking the import duty on 19 items whose total value of import in 2017-18 was about Rs 86,000 crore.
This follows a high-level meeting with Prime Minister Narendra Modi last week in the light of the falling value of the rupee and the pressure on foreign exchange outgo in which it was decided to take five measures to curb the widening current account deficit by cutting non-essential imports. The import duty on air conditioners, household refrigerators and washing machines less than 10 kg have been hiked from 10 to 20 percent. The duty on compressors for air conditioners and refrigerators has been upped from 7.5 to 10 percent while speakers and radial car tires will attract a 15 percent duty as against 10 percent at present.
Footwear will now attract 25 percent duty, 5 percent up from 20 percent while non-industrial diamond (other than rough diamonds), that is cut and polished diamond will attract 7.5 percent as against 5 percent.
The duty on diamonds — semi-processed, half-cut or broken — large grown diamonds and cut and polished coloured gemstones will go up from 5 per cent to 7.5 per cent while on articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal, will go up from 15 per cent to 20 per cent.
Imported speakers will attract a higher duty of 15 percent, up by 5 percent, while articles of the goldsmith or silversmith wares and parts thereof of precious metal or of metal clad with precious metal will go up from 15 percent to 20 percent.
Plastic bath, shower bath, sinks and wash basins, articles of plastics for conveyance and packing, tableware, kitchenware and other household items of plastics, and miscellaneous items of plastics such as office stationery and decorative sheets will attract 15 percent duty as against 10 percent at present. Trunks, suitcases, executive cases, briefcases, travel bags, and other bags will attract 15 percent duty as against 10 percent at present, and aviation turbine fuel will go up from 0 percent to 5 percent. (IANS)