Inverted Duty Structure: Govt to Address in Budget 2024
By Rediff Money Desk, NEWDELHI Dec 14, 2023 17:15
The Indian government is considering addressing the inverted duty structure for certain products in the upcoming Union Budget, aiming to boost domestic manufacturing.
New Delhi, Dec 14 (PTI) The government is likely to address the issue of inverted duty structure for certain products in the forthcoming Budget to boost domestic manufacturing, an official said.
Inverted duty structure refers to taxation of inputs at higher rates than finished products that result in the build-up of credits and cascading costs.
The official said that the Commerce and Industry Ministry has shared a list of 13-14 products with the finance ministry to look at the inverted duty structure issues.
"The ministry always shares such list of goods, where customs duties on components are higher than the finished products, We have given our inputs to the finance ministry to look at that. Inverted duty structure is not economically efficient," 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.
Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget on February 1, 2024.
Inverted duty structure refers to taxation of inputs at higher rates than finished products that result in the build-up of credits and cascading costs.
The official said that the Commerce and Industry Ministry has shared a list of 13-14 products with the finance ministry to look at the inverted duty structure issues.
"The ministry always shares such list of goods, where customs duties on components are higher than the finished products, We have given our inputs to the finance ministry to look at that. Inverted duty structure is not economically efficient," 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.
Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget on February 1, 2024.
Read More On:
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
- GTL Infrastructure
- 2.93 ( -4.87)
- 226206286
- IFL Enterprises
- 1.30 (+ 4.84)
- 81461564
- Vodafone Idea L
- 16.79 (+ 0.66)
- 67447398
- NCL Research
- 0.95 ( -4.04)
- 31996628
- Franklin Industries
- 3.73 (+ 3.32)
- 21511209
MORE NEWS
![Navi Mumbai...](https://im.rediff.com/80-80/money/2021/jun/10navi-mumbai-airport7.jpg)
Navi Mumbai Airport ILS Signal Testing Begins
The Airports Authority of India (AAI) has begun ILS signal testing at the...
![Air India VRS for...](https://im.rediff.com/80-80/money/2020/sep/09tata-vistara-3.jpg)
Air India VRS for Non-Flying Staff Ahead of...
Air India has announced a voluntary retirement scheme (VRS) and voluntary separation...
Fisher Groups Oppose WTO Fisheries Subsidy Talks
Small-scale fisher groups from India, Indonesia, and Bangladesh demand WTO keep...