Duty-free import of flat TV sets banned from 26/08

Aug 29,2013

Bogged down by the current economic slide downs – with rupees touching all time low in relation to US Dollars and continued erosion in foreign exchange reserves, Government of India is resorting to some panic measures as per economists.
 

The Government of India announced that it will prohibit duty-free import (by way of free baggage allowance) of flat panel television sets from August 26, 2013. So far, airline passengers could import such sets costing up to Rs. 35,000 duty-free. With effect from August 26, 2013 travelers will have to pay a 35% duty and some other additional charges. The ban on free import is another step to stem the rupee fall and tame the galloping current account deficit (CAD), which moderated to 3.6% in the March quarter, but is expected to jump to 4.9% in the June quarter.


 

Last fiscal, too, CAD came in at a bothersome 4.8%. As a result, the government has been taking several steps to reduce imports, like the increase in import duty on gold thrice this year. It is also considering a tax on other non-essential items like consumer durables, watches, arts and artifacts.

 

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