India mulls rationalisation of customs duty structure with fewer slabs: Report

The move is likely to help resolve disputes over classification of customs, rectify the inverted duty structures and reduce exemptions, the report said citing sources.

India is planning to reduce the number of customs duty slabs to 5 or 6 from the current 8 as part of its reforms agenda to be announced in the upcoming Budget, a report by the Economic Times said on January 8.

The proposal is part of Central government’s efforts to simplify the tariff structure, cut litigation and to align the import duties with the nation’s trade priorities, the paper said.

The move is likely to help resolve disputes over classification of customs, rectify the inverted duty structures and reduce exemptions, the report said citing sources.

The proposal also comes in the backdrop of several trade deals, both concluded and under negotiation, the report said, adding that the government also is seeking a paperless and seamless customs system. The report pointed out that the government, for the last two years, has been trying to revamp the customs system by cutting down slabs and exemptions, ET said. The report quoted a senior government official saying there is further room for rationalization in the duty structure.