Govt raises import tariff on 19 consumer goods; FIEO says tariff hike will support domestic manufacturing
New Delhi, Sept 27 (KNN)
Aiming to narrow down the rising current account deficit (CAD), the central government of India has raised import duty on 19 consumer goods including air-conditioners, refrigerators, washing machines, footwear, jewellery, furniture fittings and tableware.
Besides, government also introduced an import levy of 5 percent on the aviation turbine fuel (ATF) to check in the CAD and to improve the devaluing rupee.
“The central government has taken tariff measures, by way of increase in the basic customs duty, to curb import of certain imported items,” said Finance Ministry release.
According to release, these changes aim at narrowing the current account deficit (CAD).
The prices of all these goods are expected to rise, dampening demand, lowering imports and helping local manufacturers.
Commenting over this increase in tariff on consumer goods, Federation of Indian Export Organization President, Ganesh Gupta said “ the higher tariff coupled with depreciating Rupee will provide double protection to domestic industry and enable it to compete with imports with a view to reduce it and bridge the widening trade deficit. It will give a push to Indian manufacturing as well.”
However, he said that the increase in duty on ATF is a cause of concern, as it may hike the passenger airfare as ATF is a key factor in determining the price.