Updated By: LatestGKGS Desk
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 :
|Washing Machines ( Less than 10 kg)||10||20|
|Compressor for Refrigerators & ACs||7.5||10|
|Radial car tyres||10||15|
|Diamonds ( semi-processed)||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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