Import Duty Changes In Budget 2022

Signalling a move to protect domestic industries which are not necessarily capital, technology or labour intensive, Finance Minister Nirmala Sitharaman introduced a slew of higher custom duties on items of daily use such as umbrellas, headphones, earphones, loudspeakers, smart meters, and imitation jewellery.

The customs duty on umbrellas was doubled to 20 per cent, while exemptions provided on import of parts of umbrellas were withdrawn.

Similarly, the customs duty on single or multiple loudspeakers, whether or not mounted in their enclosures was hiked to 20 per cent from 15 per cent.

Apart from umbrellas, the customs duty on headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers, was also hiked to 20 per cent from 15 per cent, while those on smart meters was raised to 25 per cent from 15 per cent.

Import duty, meanwhile, was reduced for cut and polished diamonds, asafoetida, cocoa beans, methyl alcohol and acetic acid along with proposing to phase out the concessional rates in capital goods and project imports gradually and apply a tariff of 7.5 per cent.

One station-one product

The decision falls in line with the other Budget announcement of popularising one station-one product to popularise local businesses and supply chains.

One station-one product as a concept aims to promote a local product from each stop of the Indian Railways by making the railway station of that area a promotional and sales hub for the product.