Budget 2021: FM Stated A Jump In Customs Duty In Her Speech

Shrimp feed duty has been raised from 5% to 15%. Customs duty on cotton increased from zero to 10 per cent. By October 1, 2021, the current Customs Duty system will be established. As finance minister Nirmala Sitharaman indicated a rise in customs duty in her Budget 2021 speech, imported raw silk, mobile phone products and power banks are expected to cost more. A 2.5 per cent customs duty on several mobile phone products and power banks is declared by the Union Budget 2021. Even, she said, the duty on leather goods and polished synthetic gemstones will be raised.

The minister has raised duties on items such as fans, refrigerators, lamps, medical products, toys, cigarettes, headphones, ovens, and mixer grinders in the last budget. In order to stimulate producers to make these commodities in India, the concept is to increase duties. On November 11, the Union Cabinet authorized the Production-Linked Incentive (PLI) system for 10 sectors. This includes pharmaceutical products, vehicles and industrial parts, products including telecommunications and networking, specialized battery for chemical batteries, textiles, agricultural products, solar panels, white goods, and specialized steel. This framework was designed to make domestic manufacturing more appealing and to deter importing products from overseas.