Centre Hikes Import Duty On Jet Fuel, ACs, Refrigerators, 16 Other Items
The government on Wednesday announced a hike in customs duty on select items to curb "non-essential imports" and narrow the current account deficit. The move will be applicable to 19 items, including aviation turbine fuel (ATF), and consumer appliances such as television, refrigerator, air conditioner and speakers. The revision in customs duty tariffs - or taxes applicable to imports - will take effect from midnight, an official statement said. The move is in line with the government's aim to bring down non-essential imports to contain the current account deficit and capital outflows.
The total value of imports of these items stood at Rs 86,000 crore in 2017-18, the Ministry of Finance noted.
The import duty was doubled to 20 per cent on ACs, refrigerators, and washing machines of less than 10 kilograms, according to the official statement.
It also announced hikes to the tune of 50 per cent on basic customs duty applicable to speakers, radial car tyres, trunks, suitcases, travel bags, and household items such as shower bath, sink, tableware and kitchenware made of plastic.
| Item | Basic customs duty | ||
|---|---|---|---|
| Existing | Revised | ||
| 1 | Air conditioners | 10 | 20 |
| 2 | Household Refrigerators | 10 | 20 |
| 3 | Washing machines less than 10 Kg | 10 | 20 |
| 4 | Compressor for air conditioners and refrigerators | 7.5 | 10 |
| 5 | Speakers | 10 | 15 |
| 6 | Footwears | 20 | 25 |
| 7 | Radial Car tyres | 10 | 15 |
| 8 | Non industrial diamond (other than rough diamonds), i.e., cut and polished diamond | 5 | 7.5 |
| 9 | Diamonds-semi processed, half cut or broken | 5 | 7.5 |
| 10 | Lab grown diamonds | 5 | 7.5 |
| 11 | Cut and polished Colored gemstone | 5 | 7.5 |
| 12 | Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal | 15 | 20 |
| 13 | Articles of Goldsmith or silversmith wares and parts thereof of precious metal or of metal clad with precious metal | 15 | 20 |
| 14 | Bath, shower bath, sink, wash basin, etc. of plastics | 10 | 15 |
| 15 | Articles of plastics for conveyance and packing such as boxes, case, containers, bottles, insulated ware etc. | 10 | 15 |
| 16 | Tableware, kitchenware and other household items of plastics | 10 | 15 |
| 17 | Miscellaneous items of plastics such as office stationery, fitting for furniture's, decorative sheets, statuettes, beads, bangles etc. | 10 | 15 |
| 18 | Trunks, Suitcase, Executive cases, Brief Cases, travel bags and other bags etc. | 10 | 15 |
| 19 | Aviation turbine fuel | 0 | 5 |
The government introduced a basic customs duty on import of ATF or jet fuel. A basic customs duty of 5 per cent will be applicable on jet fuel, according to the release.
The current account deficit - the difference between inflow and outflow of foreign exchange - widened to 2.4 per cent of GDP in the April-June quarter.
Crude oil prices at new four-year highs along with prevailing weakness in the rupee - which is down more than 13 per cent so far this year - led to widening of the current account deficit. (Read: Why crude oil rates have spiked)
(With agency inputs)
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
