After increasing import duty on 19 items, the Government on Thursday hiked the import duty on certain communication items up to 20%. It is noted that the falling value of Rupee and higher crude oil prices are the main causes of widening current account deficit which is a factor of concern for the government.
The move has been taken by the Government in order to check widening current account deficit by curbing imports. Before this, the government had also increased customs duty on 19 non-essential items including Air Conditioner, Refrigerator, footwear and Aviation Turbine fuel etc., to encourage local manufacturers to promote ‘Make in India’ initiative of Government. The import duty has also been raised to 20% from 10% on communication items including switching and routing apparatus other than modems, digital loop carrier systems, and multiplexers. It has been hiked to 10 percent on populated, loaded or stuffed printed circuit boards of all goods, base station, and optical transport instruments. The increased duties would be effective from 12th October 2018.