New Delhi: The government may cut Custom Duty on several items in the General Budget (Budget 2021) to be presented next week, which include furniture raw materials, copper brittle, some chemicals, telecommunications equipment and rubber products. Sources said import duty can be cut on more than 20 products such as polished diamonds, rubber goods, leather clothing, telecommunications equipment and carpets. Apart from this, the customs duty on some unbleached wood and hardboard etc. used in making furniture can be completely abolished.
Export of furniture is very less
The expensive raw material in the international market affects the price competitiveness of India. Export of furniture from the country is very low (about one percent), while countries like China and Vietnam are the major exporters of this region. According to information received from sources, the government may also consider reducing the customs duty on bitumen and copper scrap.
PLI scheme launched to promote domestic manufacturing
The government has already taken several steps to promote domestic manufacturing. Production-based manufacturing scheme (PLI) has been introduced for many sectors including air conditioners and LED lights. Apart from this, the government may also consider increasing the charges on some finished products such as refrigerators, washing machines and cloth dryers etc.
Budget will be presented on 1 February
Finance Minister Nirmala Sitharaman will present the budget for the year 2021-22 on February 1. Sources said, reducing the charges on these goods will give a boost to the self-reliant India campaign and will accelerate domestic manufacturing.
The budget session will start on 29 January
Significantly, the budget session of Parliament will start from January 29. During the session, the general budget of the financial year 2021-22 will be presented in Parliament on 1 February. According to the statement of the Lok Sabha Secretariat, the budget session running in two parts will run till 8 April. The first phase of the budget session will run from 29 January to 15 February while the second phase will run from 8 March to 8 April.