budget: Commerce Ministry shares list of goods facing inverted duty structure

The commerce and industry ministry has shared a list of 13-14 products with the finance ministry that face issues related to the inverted duty structure, an official said.

Inverted duty structure is a situation when inputs are taxed at higher rates than finished products, which can make domestic industry import dependent. “The ministry always shares such list of goods, where customs duties on components are higher than the finished products,” said the official.

The correction of such a duty structure is important as manufacturers have to pay a higher price for raw materials in terms of duty, while the finished products land at lower duty and cost.

“We have given our inputs to the finance ministry to look at that. Inverted duty structure is not economically efficient,” the official said.

Finance minister Nirmala Sitharaman will present the interim budget on February 1.

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