With an aim to boost domestic manufacturing and create employment opportunities, the government on Tuesday doubled import duty to 20 percent on 328 tariff lines of textile products.
With an aim to boost domestic manufacturing and create employment opportunities, government on Tuesday doubled import duty to 20 percent on 328 tariff lines of textile products, ET Now reported citing news agency Cogencis. A notification to this effect was tabled by Minister of State for Finance Pon Radhakrishnan in the Lok Sabha, PTI reported. The notification said it seeks to “increase customs duty on 328 tariff lines of textile products from the existing rate of 10 per cent to 20 per cent…under Section 159 of the Customs Act, 1962”.
It is expected that an increase in duties would provide a much needed edge to the local manufacturers as the imported products currently are much cheaper than the ones locally manufactured. This step would ensure that nearly 10.5 crore people receive employment as increase in manufacturing activity will help create jobs in the sector, PTI had earlier reported.
Earlier in the month of July this year, the government had doubled import duty on over 50 textile products including jackets, suits and carpets to 20 percent. The step was then seen as a move aimed at promoting domestic manufacturing. Through a notification, the Central Board of Indirect Taxes and Custom (CBIC) had hiked import duties as well as raised the ad-valorem rate of duty for certain items.
“The duties have been doubled on most of the textile products. It will help boost domestic manufacturing but least developed countries including Bangladesh would continue to enjoy duty free access to the Indian markets,” PTI had then reported citing FIEO DG Ajay Sahai.
Due to high incidence of levies and duties, man-made fibre costs 20 percent to 30 percent more as against cheap imports from countries such as China.