Over 35 items, including private jets, plastic goods and vitamins could undergo a revision in custom duty in the upcoming Budget, as per an Economic Times report.
The Centre has formulated a list of items which includes private jets, helicopters, high-end electronic items, plastic goods, jewellery, high-gloss paper and vitamins for consideration of duties. The move is aimed at promoting local manufacturing cutting imports and import bill.
A government official familiar with the matter has told the publication the items included in the list are based on the inputs from the concerned ministries. In December, ministries were asked to submit a list of non-essential items by the commerce and industry ministry that can be imported less.
The current account deficit (CAD) rose to 4.4 per cent – a nine-year-high – of GDP in the September quarter. It was at 2.2 per cent of GDP in the quarter before that.
CAD is when the value of goods and services a country imports is higher in comparison to exports. Ths current account is in surplus when exports surpass imports.
Amid demand contraction in advanced economies, economists expect exports to be under pressure in the upcoming financial year. CAD is expected to be at 3.2-3.4 per cent of GDP.