In its efforts to bolster the government’s ‘Make in India’ initiative, basic customs duty on some electronic items including television sets, mobile phones, microwave ovens, projectors and water heaters has been hiked.
The notification issued by the Department of Revenue of the Finance Ministry on Thursday night stated that the customs duty on television sets has been raised to 15 per cent from the existing 10 per cent. Customs duty on monitors and projectors has been doubled to 20 per cent, according to the notification.
Customs duty on push-button telephones and mobile phones has been raised to 15 per cent, when no duty was charged earlier.
Customs duty on water heaters and hairdressing instrument has been doubled to 20 per cent. Customs duty on microwave ovens, lamps and light fittings has been hiked to 20 per cent from the present 10 per cent.
These changes came into effect from Thursday. The hike in duty comes at a time when the country’s trade deficit is rising, and revenue from Goods and Services Tax appears uncertain.
India’s trade deficit for July-September was $32.8 billion, and revenue from GST for October was at Rs 83,346 crore, lower than revenue for July to September.
The hike in customs duty will affect companies like Apple, Sony, which have been discussing plans to set up manufacturing units in India.