New Delhi: The government may increase customs duty on several products like paper, footwear, rubber items and toys in the forthcoming Budget with a view to promote ‘Make in India’ and boost manufacturing growth, according to reports.
The Commerce and Industry Ministry in its Budget recommendations to the Finance Ministry has proposed rationalisation of basic customs or import duty on over 300 items from different sectors, including furniture, chemicals, rubber, coated paper and paper boards, they said.
For new pneumatic tyres of rubber, it has proposed to hike customs duty to 40 per cent from the current 10-15 per cent.
On footwear and related products, the ministry has suggested an increase in duty to 35 per cent from the current 25 per cent.
For wood, metal and plastic toys, the ministry has suggested an increase in import duty to up to 100 per cent from the current 20 per cent.
Import of these toys increased to USD 304 million in 2018-19 from USD 281.82 million in 2017-18 from China and Hong Kong.
“There is a significant increase in imports of undervalued and cheap footwear. Hike in the duty will help address the issue of price competition. Majority of imports are coming from ASEAN countries, with which India has a free trade agreement. It is also suspected that China is re-routing large quantities of footwear through these countries,” a person in the know of the matter commented.