Increase In Custom Duty Will Benefit Local Manufacturers

There is good news in this budget for PM Modi's ambitious 'Make in India' campaign. In his budget speech, Finance Minister Arun Jaitley said that in order to promote manufacturing in the country, he is raising custom duty on certain items ie customs duty.

The Finance Minister said, "I am proposing to increase custom duty on mobile from 15 to 20 per cent. Similarly, custom duty on some parts and accessories of mobile and 15 percent of duty on some parts of the TV was increased to 15 percent. This will encourage employment generation in the country.

Household manufactures and assemblers have welcomed this move of the government. They say that these measures will increase the confidence of domestic entrepreneurs. However, some experts say that its immediate effect will be that the price of mobile will go up, which will be impacted on consumer pockets.

In order to discourage imports from China and other Asian countries, especially in the country, custom duty has been increased on many items of more than 10 sectors. These include mobile accessories like furniture, lighting, watches, toys and cigarette lighter. In this way, the budget proposal of this time has taken the most comprehensive steps to "preserve" domestic manufacturing.

These are provisions for enhancing domestic manufacturing.

1. Custom duty for cranberry juice has been increased five times to 50 percent in the food processing industry. Custom duty on orange juice has been increased from 30 per cent to 35 per cent and customs duty on all other fruits and vegetables has been increased from 30 per cent to 50 per cent.

2. Custom duty has been increased to 10 to 20% on perfume and many other items used in toilet.

3. Custom duty on some accessories of automobiles, cars, motorcycles etc. has been increased to 15 percent. Custom duty on ccd import of automobiles, cars, motorcycles has been increased from 10 to 15 percent. Custom duty on radial tires of trucks and buses has been increased to 10-15 per cent.

4. Custom duty on silk fiber and footwear has been increased to 20 percent.

5. Mobile duty charger / adapter has a custom duty of 10 percent, first it was zero percent.

6. Import duty on furniture, lamps, lighting fittings has been increased to 20 percent. Similarly, custom duty has been increased on watches, toys, tricycles, children's scooters, pedal cars, dolls, puzzles etc.

7. Custom duty on sunglasses, candles, kites, lighter, st spray etc. has been increased