India’s prevailing tariffs are consistent with WTO norms: FM Sitharaman

What prevails today as tariffs are to protect our own industry. Our industry is developing, and tariffs are consistent with WTO norms, says FM

India’s prevailing tariff rates are consistent with World Trade Organisation norms, finance minister Nirmala Sitharaman said on March 6 while addressing a press conference in Vishakhapatnam, Andhra Pradesh.

The finance minister, responding to a query on US President Donald Trump calling India’s high auto tariffs as “very unfair”, noted that the tariffs charged by India were consistent with WTO norms and what a developing country has to levy to protect the industry.

“What prevails today as tariffs are to protect our own industry. Our industry is developing, and tariffs are consistent with WTO norms. We will keep India’s interest in mind during negotiations (with the US),” the finance minister noted.

She further highlighted that India would keep exporters’ interests in mind in its bilateral negotiations with the US.

“The Commerce Minister (Piyush Goyal) has gone to the US to initiate discussions, and all of us are sharing inputs to protect the interest of exporters,” Sitharaman said.

On March 6, CNBC-TV18 reported that the US has asked India for nil tariffs on nearly all its products except agricultural goods.

US President Donald Trump, in his first address to the joint session of Congress, named India as one of the countries that charge high tariffs again raising up the issue of high auto tariffs charged by New Delhi.

“Other countries have used tariffs against us for decades and now it’s our turn to start using them against those other countries,” he noted.

A Moneycontrol analysis shows that just 0.4 percent of US’ non-oil exports attract high tariffs of 60 percent and above. India is placed ninth among countries that charge this rate to products entering its territory, with more products headed to Korea, Canada and Mexico from the US experiencing higher rates.

The finance minister also addressed queries related to taxation, highlighting that the number of people paying tax may fall after the exemption limit has been raised to Rs 12 lakh in the recent Budget.

At present around 9 crore people file returns, of which 3 crore pay income tax.

The event was also attended by Department of Economic Affairs Secretary Ajay Seth, who answered queries on the issue of long-term capital gains.

“Stock markets go up and down for different reasons, and they have nothing to do with taxation. The government of India does not take a view on differentiating between different asset classes. We charge them uniformly. Tax rates and stock market are different issues,” Seth said.