Union Budget 2021: Centre may tweak customs duties on several goods, say sources
The government may also consider reducing customs duties on coal tar pitch and copper scrap, while raising levies on finished goods such as refrigerators, washing machines and dryers
New Delhi: The government may tweak customs duties in the Budget next week on several goods, including furniture raw materials, copper scrap, certain chemicals, telecom equipment and rubber products, to promote domestic manufacturing and exports, sources said.
They said that while import duties could be hiked on over 20 products such as cut and polished diamonds, rubber goods, leather garments, telecom equipment and carpet, the customs duties could be removed on select raw materials (like wood in rough, swan wood and hardboard) used for furniture manufacturing and copper concentrate.
"Expensive raw materials impact India's price competitiveness in the international market. The country's exports of furniture are very low (about one per cent), while countries like China and Vietnam are major players in the sector," they added.
The government may also consider reducing customs duties on coal tar pitch, and copper scrap, while raising the levies on certain finished goods like refrigerator, washing machine and clothes dryer, one of the sources said.
The government is already taking steps to boost domestic manufacturing such as the introduction of production-linked incentives scheme (PLI) for several sectors including air conditioners and LED lights.
Finance minister Nirmala Sitharaman will unveil the Budget 2021-22 on 1 February.
"Tweaking of duties on these goods would help promote self-reliant India campaign and boost domestic manufacturing," they added.
Last year, the government increased import taxes on several products such as furniture, toys, and footwear.
She also added that the Congress was involving itself in absentee politics and what we required was a Congress-mukt Bharat
Nirmala Sitharaman said Prime Minister Narendra Modi was also encouraging the party workers, leaders and legislators to work for the welfare of the people
The finance minister's remarks come ahead of the launch of the budgetary announcement of CBDC which is based on the blockchain technology and billed as being similar to paper currency