The central government, in a bid to reduce the current account deficit and bring a halt to the falling rupee, has hiked the import duty on 17 items. The same was announced through a notification by the finance ministry on Thursday.
The import duty hike is primarily on equipment used in the telecom industry, with the new import duty being 20 per cent.
Some of the items which will attract the new import duty are packet transport node products, soft switches & VoIP equipment, IP radios and optical transport network products, etc. The previous import duty on these items was 10 per cent, with the new rates effective from October 12.
The government had previously hiked the import duty on 19 items last month.
The government, in addition to hiking the import duty, also prohibited the use of imported electronic intermediate goods which are used in manufacturing telecom equipment, for the local manufacturing of these equipment. This is according to a report by Hindustan Times.
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Sources: Hindustan Times, Times of India, Money Control, The Hindu BusinessLine