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Finance Ministry hikes 19 non-essential items import duty to limit import: Full List

 

 

Union Finance Ministry hikes import duty of 19 non-essential items to limit import: Details, Aim, Purpose, Items List

The Union Finance Ministry has increased import duty on 19 ‘non-essential items’ high-end consumer items to limit the import of certain imported items.

This decision was taken in an effort to stabilize depreciating rupee by narrowing the current account deficit (CAD) and get outgoing foreign funds flowing back to India.

Current Account Deficit (CAD) is the difference between inflow and outflow of foreign exchange. It has widened to 2.4% of GDP in the April-June quarter.

The 19 ‘non-essential items’ include air conditioners, refrigerators, washing machines and ATF (aviation turbine fuel). Total import bill on account of shipment of these items into the country in last fiscal (2017-18) was Rs 86,000 crore.

Curbing non-essential imports was part of Central Government’s five-pronged steps to check widening CAD and capital outflows. Other steps included removal of withholding tax on Masala bonds, relaxation for Foreign portfolio investment (FPIs).

The rupee has depreciated more than 12% so far this year on widening CAD and higher oil prices.

Revised rate for the following items : 

Item Current Revised
Air Conditioner 10 20
Refrigerators 10 20
Washing Machines ( Less than 10 kg) 10 20
Compressor for Refrigerators & ACs 7.5 10
Speakers 10 15
Footwears 20 25
Radial car tyres 10 15
Non-industrial diamonds 5 7.5
Diamonds ( semi-processed) 5 7.5
Lab-grown diamonds 5 7.5
Cut & polished colored gems stones 5 7.5
Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal 15 20
Articles of Goldsmith or silversmith wares and parts thereof of precious metal or of metal clad with precious metal 15 20
Bath, shower bath, sink, wash basin, etc. of plastics 10 15
Articles of plastics for conveyance and packing such as boxes, case, containers, bottles, insulated ware etc. 10 15
Tableware, kitchenware and other household items of plastics 10 15
Miscellaneous items of plastics such as office stationery, fitting for furniture’s, decorative sheets, statuettes, beads, bangles etc. 10 15
Trunks, Suitcase, Executive cases, Brief Cases, travel bags and other bags etc. 10 15
Aviation turbine fuel 0 5

 

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