Government May Restructure Customs Levies In February Budget
A duty increase on certain items is likely, intended to boost local manufacturing.
The government may restructure customs levies, with an announcement expected in the upcoming Union Budget next February. The aim is to simplify the current system by reducing the number of duty rates from over twelve to six. This overhaul will focus on streamlining duties related to steel, solar batteries, aluminum, and lithium cells.
A duty increase on certain items is likely, intended to boost local manufacturing and address inverted duty structures for specific products. The government is also considering levy adjustments to minimise classification-related litigation, which has been impacting the import and export processes of goods, sources told NDTV Profit.
To ensure the effectiveness of these changes, industry stakeholders' input will be sought for the proposed rate adjustments. Additionally, the government is reviewing duty concessions to align them with existing Free Trade Agreements (FTAs).
(This is a developing story)
