Import duty on about fifty items, including smartphones, could be increased

Mumbai, Ta. 19 January 2021, Tuesday

The Indian government is considering raising import duties on about 50 items, including smartphones, electronic devices and appliances, in the next budget. Duties could be increased by five to ten per cent, finance ministry sources said.

The increase is aimed at increasing the demand for home-made goods to make the Self-Reliance India program a success. The increase in duty will be a relief for the country's producers.

The Finance Ministry expects the increase in revenue through import duties to increase between Rs 200 billion and Rs 303 billion in the exchequer.

The increase in duties could affect sales of foreign furniture and cars. The sector has already demanded an increase in duties to protect the country's furniture industry. In addition, duties on imported ACs, freezers, etc. are also likely to increase.

The budget for the financial year 2021-26 will be released on February 1. The budget is expected to cut the country's economic growth rate by 7.50 per cent in the current financial year.

The government believes that if the country's industries are to be protected and India is to become self-sufficient, the attraction to foreign goods must be reduced. Last year too, the finance minister had increased import duty on footwear, toys, electrical appliances and other items by 20 per cent. Import duty has been a major source of revenue for the government since the introduction of GST in the country. Imports were greatly affected during the Corona period.