Budget 2023: From jewellery to electronics, customs duty on 35 items may be hiked to boost domestic manufacturing
Photo : BCCL
The list of over 35 items that could see a customs duty hike in the budget, scheduled to be announced on February 1, includes private jets, jewellery, helicopters, plastic goods, high-end electronic items, high-gloss paper and vitamins.
“A list has been drawn up based on the inputs from various ministries that are being examined,” a government official told Economic Times. The move to raise the customs duty on these things is aimed at reducing imports along with giving a boost to local manufacturing of some of these products.
Last month, Piyush Goyal-led commerce and industry ministry had directed different ministries to come up with a list of non-essential items, the imports of which need to be discouraged through import tariff hike.
In the last budget, the Centre had raised import tariffs on a range of items including imitation jewellery, umbrellas and earphones, to provide an impetus to local manufacturing. Meanwhile, the government had last year also hiked import tariffs on gold to curtail its imports.
“Goods already being manufactured in the country are being considered,” said the official cited above.
Bringing down the imports of non-essential items is important for India as the country’s current account deficit (CAD) had jumped to a nine-year high of 4.4 per cent of GDP in the quarter ended September from 2.2 per cent of GDP in the quarter before.
The Budget Session of the Parliament is expected to commence on January 31, 2023 and the Union Budget for FY 2023-24 will be presented on February 1.