Export Product

Finance Minister Nirmala Sitharaman is likely to hike import duty on several products ranging from toys, footwear, paper and rubber items in Union Budget 2020.

The government may make this announcement to boost its ‘Make in India‘ vision and promote manufacturing growth.

These budget recommendations have recently been made by the Commerce and Industry Ministry to the Finance Ministry.

The (commerce and industry) ministry in its (budget) proposals has suggested rationalisation of basic import duty on around 300 items from various sectors comprising chemicals, coated paper, furniture, paper boards and rubber, sources told PTI.

For new pneumatic tyres of rubber, it has proposed to hike customs duty to 40 per cent from the current 10-15 per cent

Similarly, on footwear and related products, the ministry has suggested an increase in duty to 35 per cent from the current 25 per cent

The ministry has proposed to increase import duty on wooden furniture to 30 per cent from the current 20 per cent

For coated paper, paper boards and hand made papers, it has suggested doubling the duty to 20 per cent

However, it has asked for the removal of import duty on waste paper and wood pulp, which is currently at 10 per cent and 5 per cent, respectively.

The paper industry has expressed concerns about cheap imports and surge in inbound shipments.

For wood, metal and plastic toys, the ministry has suggested an increase in import duty to up to 100 per cent from the current 20 per cent.

Import of these toys increased to $304 million in 2018-19 from $281.82 million in 2017-18 from China and Hong Kong.

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