The Government of India has announced to increase the import duty on 19 items, including air conditioners, refrigerators and washing machines, in an attempt to reduce the imports that would help in restraining the widening current account deficit and reduce the stress on the rupee.

According to a statement by the Finance Ministry, the increase in rates of basic customs duty will be effective from today i.e. 27/09/2018. The total value of imports of these items in 2017-18 was about Rs 86,000 crore.

Import duty on air conditioners, refrigerators and washing machines under 10-kilogram capacity has been doubled to 20 percent each from 10 percent earlier. The basic customs duty on radial tyres is now 15 percent compared with 10 percent earlier, while the import duty on footwear has been hiked to 25 percent from 10 percent.

The government also introduced an import levy of 5 percent on the aviation turbine fuel. Other import duty hike includes; Compressor for air conditioners and refrigerators from 7.5 percent to 10 percent, Speakers from 10 percent to 15 percent.

Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal from 15 percent to 20 percent. Both, Bath, shower bath, sink, wash basin, etc. of plastics and Trunks, Suitcase, Executive Cases, Briefcases, travel bags and other bags etc. from 10 percent to 15 percent.

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