The commerce and industry ministry is drawing up a roadmap to work on the kind of documentation that needs to be maintained by Indian exporters to deal with anti-subsidy levies such as countervailing duty cases conducted by various countries on domestic products.
Logistics Costs: The report has been prepared by the National Council of Applied Economic Research (NCAER) in a consultative manner with guidance of the Asian Development Bank (ADB) experts and task force members.
The government plans to address the inverted duty structure in the upcoming Budget to bolster local manufacturing. This structure, where input taxes exceed those on finished goods, creates cost discrepancies. The Commerce Ministry shared a list of 13-14 affected products with the Finance Ministry, emphasizing the need for reform. This issue burdens manufacturers with higher input costs, hindering competitiveness. Finance Minister Nirmala Sitharaman is set to unveil the Union Budget on February 1, 2024.
The commerce and industry ministry has shared a list of 13-14 products with the finance ministry that face issues related to the inverted duty structure, an official said. Inverted duty structure is a situation when inputs are taxed at higher rates than finished products, which can make domestic industry import dependent. "The ministry always shares such list of goods, where customs duties on components are higher than the finished products," said the official.