InvestorQ : Is it true that the government proposes to raise the import duties in the current Union Budget?
NISHA Nayak made post

Is it true that the government proposes to raise the import duties in the current Union Budget?

Answer
image
Priyanka N answered.
2 months ago
Follow

That is one of the strategies that the government is exploring to enhance its revenues for the next fiscal year. In a year when the government is likely to look closely at all possible sources of revenue, it is more than likely that import duties may be hiked on an average by 5% to 10%. It would be interesting to see which products it hikes the duties on.

Initial indications are that the Union Budget would most likely use this as an opportunity to give an indirect boost to the Atma Nirbhar program of the Indian government. That means we can see duty hikes in products like smart phones, electronic components and appliances. This is where the government is planning to focus more on in-sourcing rather than importing.

The government is actually looking at raising an additional revenue of Rs.21,000 crore in the budget to fund the COVID program. This also includes the all-India vaccination program, especially for the frontline health workers, which the government is likely to sponsor. This could be used as one source of funding the gap in the short term.

As of now, it looks like even items like refrigerators and ACs may come in this list as India will try and give a big push to the “Make in India” project. However, this could be more of a temporary measure as over the medium term to long term it would also impact a lot of foreign companies that India plans to invite into India to set up manufacturing facilities.

4 Views