If you fancy imported items such as automobiles, bikes, watches, sunglasses and mobile phones, get ready to pay more for these products.
In order to push government's Make in India initiative further, Finance Minister Arun Jaitley today hiked duties on a vast list of imported items, including mobile phones, automobiles, gold, diamond, fruit and vegetable juices, and perfumes. "There is substantial potential for domestic value addition in certain sectors, like food processing, electronics, auto components, footwear and furniture.
To further incentivise the domestic value addition and Make in India in some such sectors, I propose to increase customs duty on certain items," Jaitley said in his budget speech for year 2018-19. "This measure will promote creation of more jobs in the country," he added.
Subsequently, customs duty on completely knocked down (CKD) imports of motor cars and motor cycles has gone up from 10 per cent to 15 per cent. While customs duty on completely build units (CBU) imports of motor vehicles has gone up to 25 per cent from 20 per cent earlier making them more expensive. Imported truck and bus radial tyres will become expensive too with a duty of 15 per cent now as against 10 per cent earlier.
Likewise, imported mobile handsets will become costlier as customs duty has been increased from 15 per cent to 20 per cent while some of their parts and accessories will now attract duty of 15 per cent. Similarly, imported LCD/ LED/ OLED TV panels and other parts of TVs have been charged customs duty of 15 per cent. Perfumes, toilet water and imported beauty and make up preparations will now attract customs duty of 20 per cent as against 10 per cent earlier.
Customs duty on wrist watches, pocket watches, smart watches/wearable devices and sunglasses have been doubled to 20 per cent. Finance Minister also doubled customs duty on cut and polished coloured gemstones, diamonds, including lab grown diamonds-semi processed, half-cut or broken, non-industrial diamonds to 5 per cent from 2.5 per cent earlier. Duty on imported footwear and silk fabrics has also been doubled to 20 per cent.
Customs duty on imported fruit juices has been hiked by up to 40 per cent. Imported cranberry juice will now attract customs duty of 50 per cent from 10 per cent earlier. Duty on orange fruit juice has gone up from 30 per cent to 35 per cent while duty on other fruit and vegetables juice have been increased to 50 per cent from 30 per cent earlier. Customs duty on crude edible vegetable oils like olive oil, ground nut oil has been hiked to 30 per cent from 12.5 per cent earlier.
While customs duty on refined edible vegetable oils including oil, ground nut oil has been hiked to 35 per cent from 20 per cent earlier. Imported gold items, including gold plated with platinum, unwrought or in semi manufactured form will become costlier as there will be a surcharge of 3 per cent of the aggregate duties of customs from nil earlier. However, the finance minister has given relief on select items such as imported raw cashew nuts, solar tempered glass raw materials and accessories of cochlear implants.
Customs duty on imported raw cashew nuts has been slashed from 5 per cent to 2.5 per cent. Solar tempered glass or solar tempered glass for manufacture of solar cells/panels/modules will now attract nil duty from 5 per cent earlier. Customs duty on raw materials, parts and accessories of cochlear implants has been reduced to nil from 2.5 per cent earlier.