Budget 2020 likely to hit your wallet? Modi government may hike import duty for over 50 items: Report

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Updated: Jan 28, 2020 8:35 AM

Budget 2020 India expectations: In Budget 2020, FM Sitharaman may announce a hike in import tariffs by 5 per cent-10 per cent.

Budget 2020 India expectationsUnion Budget 2020 India: During the Budget 2019 presented in last July, the central government raised import tax on over 75 items.

Budget 2020 expectations: Get ready to spend more on imported goods as Finance Minister Nirmala Sitharaman is likely to announce an increase in import duties in her Union Budget India 2020 speech on February 1. The Narendra Modi government may go for a hike in import duties on over 50 ‘non-essential’ items to provide a “level-playing field” for local manufacturers during the India Budget 2020, according to a Reuters report. The list of ‘non-essential’ items includes electrical goods, electronics, handicrafts, and chemicals. The Central government may target around $56 billion worth of imports from China and other countries. This is one of several stimulus measures that FM Sitharaman may announce in India Budget 2020 to revive the domestic manufacturing sector and hence the Indian economy, the report said.

In Budget 2020, FM Sitharaman may announce a hike in import tariffs by 5 per cent-10 per cent. The recommendation has been made by a panel of trade and finance ministry officials, the report said. Some items are –

Mobile phone chargers

Industrial chemicals

Lamps

Wooden furniture

Candles

Jewellery

Handicraft items

During the pre-Budget 2020 consultations between a committee of trade ministry officials and local industries, it was planned to target over 130 items accounting for roughly $100 billion worth of imports. However, the list has been pruned down ahead of Budget 2020.

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Apart from increasing imports duties on over 50 “non-essential” items in Budget 2020, the central government is mulling imposing “quality standards” on imports separately in the upcoming Union Budget 2020. The trade ministry has also proposed the Union Finance Ministry to impose Border Adjustment Tax (BAT) on imported goods.

During the Budget 2019 presented in last July, the central government raised import tax on over 75 items, including gold and automobile parts. Since taking charge in 2014, the Narendra Modi has imposed a number of restrictions on imports. However, the central government has allowed more foreign investment in manufacturing, defence and other sectors.

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