Inverted Duty Structure for Washing Machines, Solar Glass, Air Purifiers
By Rediff Money Desk, New Delhi May 22, 2024 14:01
Indian government considering addressing inverted duty structure for products like washing machines, solar glass, air purifiers to promote domestic manufacturing.
New Delhi, May 22 (PTI) The government is likely to consider addressing the issue of inverted duty structure for certain products like paper, furniture, washing machines, solar glass, and air purifiers to promote domestic manufacturing, an official has said.
Inverted duty structure refers to taxation on inputs at higher rates than finished products that result in the build-up of credits and cascading costs.
The official said the Commerce and Industry Ministry has shared a list of products with the Finance Ministry to look at the inverted duty structure issues.
The list was shared after holding detailed consultations with industry associations and export promotion councils.
"We have already sent the list to the Finance Ministry. The list includes products such as paper, furniture, washing machines, solar glass, air purifiers, and some cases in apparel and jewellery also," the official said.
Inverted duty structure impacts the domestic industry, as manufacturers have to pay a higher price for raw materials in terms of duty, while the finished products land at lower duty and cost.
Expensive inputs make products costly and cannot compete in the export market. In the domestic market, such products are prone to cheaper imports.
Addressing this duty issue would help the competitiveness of domestic exporters and that, in turn, will help increase shipments and promote manufacturing.
Inverted duty structure refers to taxation on inputs at higher rates than finished products that result in the build-up of credits and cascading costs.
The official said the Commerce and Industry Ministry has shared a list of products with the Finance Ministry to look at the inverted duty structure issues.
The list was shared after holding detailed consultations with industry associations and export promotion councils.
"We have already sent the list to the Finance Ministry. The list includes products such as paper, furniture, washing machines, solar glass, air purifiers, and some cases in apparel and jewellery also," the official said.
Inverted duty structure impacts the domestic industry, as manufacturers have to pay a higher price for raw materials in terms of duty, while the finished products land at lower duty and cost.
Expensive inputs make products costly and cannot compete in the export market. In the domestic market, such products are prone to cheaper imports.
Addressing this duty issue would help the competitiveness of domestic exporters and that, in turn, will help increase shipments and promote manufacturing.
Source: PTI
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Srestha Finvest
- 0.66 (+ 4.76)
- 32896927
- Vodafone Idea L
- 8.45 (+ 4.06)
- 28557277
- Standard Capital
- 1.14 (+ 0.88)
- 17361276
- Alstone Textiles
- 0.83 (+ 5.06)
- 14796552
- AvanceTechnologies
- 0.89 (+ 4.71)
- 10049569
MORE NEWS
Gold Poised for 15-18% Returns in Samvat 2081:...
Analysts predict a strong 15-18% return for gold in Samvat 2081, driven by positive...
Punjab Paddy Procurement Crosses 85 Lakh...
Punjab has procured 85.41 lakh tonnes of paddy in the 2024-25 kharif marketing season,...
Microsoft Sees No Tech Spend Slowdown in India,...
Microsoft India President Puneet Chandok highlights strong tech spending in India,...