Arun Jaitley in an exclusive interview to Zee Business defended hiking customs duty in several imported goods like phones, LCD TVs etc. However he avoided a pointed question regarding if the move has been taken keeping China in mind.
Union Finance Minister said for 20 years duties have been decreased, but an exception has been made this year. Jaitley said for items which are being made in India, hike in price of imported goods is in national interest. Arun Jaitley gave examples of footwear, textile, television and mobile manufacturing as industries where the need of the hour is to encourage local businesses. He said to strengthen domestic industry, use of duty structure has to be used at times. So in effect, it was a step to further give an impetus to Make in India project.
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Television prices will rise as the government increased customs duty on imported panels and other parts used in its manufacturing, however, makers expect the move to help the industry in long run. Terming the customs duty increase as a "logical step", TV manufacturers have welcomed the government's move saying it would help domestic manufacturing industry. While, presenting budget for FY 2018-19, Finance Minister Arun Jaitley proposed to double customs duty on imported panels to 15% from existing 7.5% to encourage local manufacturing. The government has also increased the customs duty on parts of LCD/LED/OLED TVs to 15% from existing 10% to boost domestic manufacturing.
Apple iPhones and Google's Pixel could be costlier by 3-4% with the government hiking customs duty on mobile phones to 20%, say market watchers. Presenting the Union Budget 2018-19, Finance Minister Arun Jaitley said the customs duty on phones has been raised from 15% to 20% and on some other parts and accessories to 15%, to "intensify" domestic value addition and Make-in-India in the sector. Customs duty on smart watches and wearables has been doubled to 20%, while that on specified parts and accessories of mobile phones has gone up to 15% from the current range of 7.5-10%.
With agency inputs
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