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.