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GTRI urges simplified customs duty structure to boost manufacturing and exports
Industry News- Jan 15,25
According to GTRI, currently, 85% of tariff revenue is generated from just 10% of tariff lines or product categories, while 60% of tariff lines account for less than 3% of total revenue.
The Global Trade Research Initiative (GTRI) has suggested that the government simplify the customs duty framework in the upcoming Budget by reducing the number of duty slabs from over 40 to just 5. The think tank emphasised the need to tax raw materials at lower rates than finished goods to reduce import bills, promote manufacturing, and increase exports.
GTRI also called for an inter-ministerial review of tariff policies to refine India's tariff structure, ensure alignment with national goals, and avoid international scrutiny. The think tank proposed reducing India’s average tariff to approximately 10%, stating that this can be achieved without significant revenue loss.
According to GTRI, currently, 85% of tariff revenue is generated from just 10% of tariff lines or product categories, while 60% of tariff lines account for less than 3% of total revenue. Simplifying the structure could streamline operations and foster industrial growth.
(ET)
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