Budget 2021: Govt may tweak customs duties on host of goods

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The government may tweak customs duties in the Budget next week on several goods, including furniture raw materials, copper scrap, certain chemicals, telecom equipment and rubber products, to promote domestic manufacturing and exports, sources said.

They said that while import duties could be hiked on over 20 products such as cut and polished diamonds, rubber goods, leather garments, telecom equipment and carpet, the customs duties could be removed on select raw materials (like wood in rough, swan wood and hard board) used for furniture manufacturing and copper concentrate.

“Expensive raw materials impact India”s price competitiveness in the international market. The country”s exports of furniture is very low (about one percent), while countries like China and Vietnam are major players in the sector,” they added.

The government may also consider reducing customs duties on coal tar pitch, and copper scrap, while raising the levies on certain finished goods like refrigerator, washing machine and clothes dryer, one of the sources said.

The government is already taking steps to boost domestic manufacturing such as introduction of production-linked incentives scheme (PLI) for several sectors including air conditioners and LED lights.

Finance minister Nirmala Sitharaman will unveil the Budget 2021-22 on February 1.

“Tweaking of duties on these goods would help promote self-reliant India campaign and boost domestic manufacturing,” they added.

Last year, the government increased import taxes on several products such as furniture, toys, and footwear.

Source from: https://www.moneycontrol.com/news/business/economy/budget-2021-govt-may-tweak-customs-duties-on-host-of-goods-6393691.html