Customs duty hike on dozens of items probably in the upcoming Union Budget 2023-24

NEW DELHI: Budget 2023: The Government has zeroedinondozensofproductsacrosssectors—including aviation, electronics, steel and industry — for possible customs duty hike in the Budget for FY24 to curb “nonessential imports” and improve local production, official sourcestold.Productssuchasprivatejetsandhelicopters, select consumer electronics products, plastics, certain iron & steel products, jewellery and leather could witness higherduties.

At the same time, the Government is also weighing proposals fordutycutsinsomecases,especially toensure smoothimportsofrawmaterials.TheCommerceMinistry has suggested that the import duty on gold and certain other products in the gems and jewellery sector be trimmedtoboostexportsoffinishedproducts.

In the last Budget, the Government had raised the import duty on gold to 15% from 10 75% The “rationalisation” of import duties is also being contemplatedtocorrecttheinverteddutystructurewhere raw materials are taxed at a higher rate than the finished goods.

The proposed duty changes are based on the suggestions ofvariousAdministrative Departments tothe FinanceMinistry.