DAILY NEWS ANALYSIS

GS-III : Economic Issues Tax

19 January, 2021
8 Min Read

Government may raise import duties by 5-10%

The government may raise import duties by 5-10%

India is considering raising import duties by 5%-10% on more than 50 items including smartphones, electronic components and appliances in the upcoming budget.
The move to increase import duties is part of Prime Minister Narendra Modi’s self-reliant India campaign that aims to promote and support domestic manufacturing, said the sources, who asked not to be named as the discussions are not public.
One of the sources said the government was seeking to target additional revenue of about Rs. 200 billion to Rs. 210 billion, as it looks to shore up revenue amid the COVID-19 pandemic-driven slowdown that has stung the economy.
Two of the government sources also said the duty increases could impact furniture and electric vehicles, potentially hurting the likes of Swedish furniture maker Ikea and Tesla, which is planning to launch its cars in India this year.
The officials, however, did not specify how much of an increase was planned on furniture and electric vehicles.
Both Ikea and Tesla executives have previously expressed concerns about the steep duty structure their products already face in India.
The list of items likely to attract steeper duties is set to include appliances such as refrigerators and air conditioners too, three of the sources said.
India’s finance minister will on Feb. 1 unveil the central government’s annual budget for the 2021-22 financial year, which begins on April 1.
The sources said the proposals may still be tweaked further before they are finalised.
Finance Minister Nirmala Sitharaman will unveil the budget on Feb. 1 in the shadow of a projected economic contraction of 7.7% for the current fiscal year.
India has in recent years taken a series of measures that industry executives say discriminate against foreign companies. Government officials say such taxes are essential to promote India as a destination for local manufacturing and to support domestic businesses.
“This is part of revenue raising and Atmanirbhar Bharat (self-reliant India) plan,” said one of the government sources.
Last year, India raised duties on a range of products such as footwear, furniture, toys, electrical and electronics items by up to 20%.

Source: TH

Join Our Telegram

Labour laws in India

THEODORE BASKARAN WON SANCTUARY LIFETIME SERVICE AWARD 2020

Pradhan Mantri Suryodaya Yojana

06 Feb, 24
SHARE

Recently, Prime Minister announced Pradhan Mantri Suryodaya Yojana under which 1 crore households will get rooftop solar power systems. India’s Status of Current Solar Capacity India currently stands at 4th place globally in solar power capacity. As per Ministry of New an

Foreign Contribution Regulation Act (FCRA)- NGO

06 Feb, 24
SHARE

The Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled this month. What is FCRA? Key provisions of FCRA, 2010 Key aspects Description

Voice clone-AI

06 Feb, 24
SHARE

Voice clone fraud has been on the rise in India. AI voice cloning – It is the process of creating a synthetic replica of a person’s voice through machine learning and speech synthesis technology.It is called as voice deepfakesor audio deepfakes. Objective – To achieve a high level of na

Science communication- how to promote

06 Feb, 24
SHARE

Steps taken by India to promote Science Communication Publications and Information Directorate (PID) - An organisation under Council of Science and Industrial Research (CSIR) established in 1951 for publishing and disseminating scientific information in India. National science magazines- The PI

Universal Basic Income (UBI)- Analysis

05 Feb, 24
SHARE

Universal Basic Income (UBI) can strengthen welfare architecture and unlock the nation’s latent demographic potential. UBI - It is an income support mechanism typically intended to reach all or a very large portion of the population regardless of their earnings or employment status. Objective- To provide enough to co

Quick Links Testimonials FAQ

Crash Course

Regular Modules 2024

Mains

Optional

Government may raise import duties by 5-10%

The government may raise import duties by 5-10%

Pradhan Mantri Suryodaya Yojana

Foreign Contribution Regulation Act (FCRA)- NGO

Voice clone-AI

Science communication- how to promote

Universal Basic Income (UBI)- Analysis

DNA

06 Feb,2024

GS-III

PT Pickups

Toppers

Search By Date

Top Editorials

UPSC Courses

Saarthi Mentorship Programme

Important Tags

Articles:Geography And Environment

Articles: History Culture Society

Articles: Governance & National Issues

Articles: IR & IO

Articles: Economic Development & Economic Issues

Articles: S&T Internal Security

Articles: Ethics & Others

Articles: Others

Newsletter Subscription

SMS Alerts

Important Links