According to a finance ministry notification released on Thursday night (11/10/2018), the government has increased the import duty on 17 items to up to 20 per cent, as part of its effort to cut the current account deficit and prevent a further slide in the rupee.

Products including smart watches and telecom equipment have witnessed an increase in import duty from the current 10% to 20%. In another notification, the finance ministry also barred the use of imported electronic intermediate goods, mostly those used to make telecom equipment, in the local manufacture of the latter.

This is the second time the government has increased the rate on import duty, within the period of few weeks. The Central Board of Excise and Customs (CBIC) said in a notification that the increased duties would be effective from October 12.

As per the notification, the products on which the duty has been raised from 10 per cent to 20 per cent includes, base stations and machines for the reception, conversion and transmission or regeneration of voice, images or other data, etc.

The CBIC said the Central government was satisfied that the import duty leviable on goods falling under Chapter 85 of the First Schedule to the Customs Tariff Act, 1975, should be increased and that circumstances exist which render it necessary to take immediate action.

The government had on September 26 doubled the import duty on 19 items, including air conditioners, household refrigerators and washing machines (less than 10 kg), to 20 per cent.

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