Government has increased Customs duty on 19 items including air conditioners, refrigerators, jewellery, car tyres and aviation fuel from September 27th.
According to finance ministry sources the increase in tariff was aimed at narrowing current deficit. Total value of imports facing higher or new tariffs is 860 billion rupees. The objective is also to reduce the import bill and reduce non essential imports.
The increase in custom duty will make the following items costlier due to the increase in tariffs:
Air conditioners, household refrigerators, washing machines less than 10 kg, compressor for air conditioners and refrigerators, speakers, foot wear, radial car tyres, non industrial diamond (other than rough diamonds) i.e. cut and polished diamond, diamonds semi processed, half cut or broken, lab grown diamonds, cut and polished coloured gemstone, articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal, articles of goldsmith or silversmith wares and parts thereof of precious metal or of metal clad with precious metal, bath, shower bath, sink, wash basin, etc. of plastics, articles of plastics for conveyance and packing such as boxes, case, containers, bottles, insulated ware etc. Tableware, kitchenware and other household items of plastics, Miscellaneous items of plastics such as office stationery, fitting for furniture, decorative sheets, statuettes, beads, bangles, etc. Trunks, suitcases, executive cases, brief cases, travel bags and other bags etc. and aviation turbine fuel are all included.
The administrative decision, which in the good old days used to be part of the budget proposals, is expected to mop up substantial revenue. This was one of the decisions after meeting with the prime minister.