(MENAFN- KNN India)
New Delhi, Feb 3 (KNN) The Central Board of Indirect Taxes & customs (CBIC) has implemented comprehensive changes to the nation's tariff structure by eliminating several high tariff rates.
CBIC Chairman Sanjay Kumar Agarwal announced that the restructuring initiative has successfully removed seven elevated tariff rates, primarily focusing on industrial goods while maintaining existing rates for Agriculture and textile sectors.
The extensive review encompassed approximately 8,500 tariff lines related to industrial goods out of a total of 12,500 lines.
This strategic revision has resulted in a notable reduction in average customs duty rates from 11.65 per cent to 10.66 per cent, bringing India's tariff structure more in alignment with ASEAN countries.
While this addresses international criticism regarding India's high tariff rates, it's worth noting that many imports, particularly those from the United States, already fall within a more moderate 0 per cent to 10 per cent range.
As part of Budget 2025, Finance Minister Sitharaman introduced modifications to automotive import tariff rates, though maintaining effective duty rates unchanged in certain categories.
However, these adjustments may impact state revenues as increased cesses for agriculture and infrastructure development offset the reductions in basic customs duties.
The government has implemented a simplified approach by increasing the agriculture infrastructure and development cess (AIDC) while simultaneously reducing basic customs duties.
This restructuring ensures that individual items are subject to either a cess or a surcharge, eliminating dual taxation and resulting in surcharge exemptions for 82 tariff lines.
To minimise industry disruption, the AIDC has been strategically imposed at rates equivalent to or lower than previous tariff levels on selected items, with provisions for future adjustments following stakeholder consultations.
Regarding steel imports, Chairman Agarwal emphasised that the government's approach focuses on targeted measures such as anti-dumping or safeguard duties rather than broad tariff increases, which could potentially harm India's international trade reputation.
He confirmed that investigations into steel imports are currently being managed by the Directorate General of Trade Remedies (DGTR), reflecting a more nuanced approach to trade regulation.
(KNN Bureau)
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