Air Travel And AC’s Among Other Items Set To Become Dearer As Government Hikes Import Duties To Arrest Rupee FallDeparture terminal at the Delhi airport. (Wikimedia Commons)

The central government has hiked the customs duty on 19 items which include among others Aviation Turbine Fuel (ATF), air-conditioners, refrigerators, small washing machines, footwear, suitcases, gold and silver jewellery.

This measure of the government is in light of the slump in the rupee’s value as global crude prices continue to rise doubling pressure on the government. With oil prices rising, there are fears over the current account deficit (CAD) spiralling out of control. It is expected that by hiking the import duties on these non-essential goods, the government would be able to stem of the rupee’s rapid fall.

The government stated that the total value of imports of the 19 items, for which tariffs have been hiked, was approximately Rs 86,000 crores with the exchange rate being pegged at Rs 65 a dollar which was the average for the previous fiscal year.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement