Statsguru: Customs duty revisions in Budget aimed to boost manufacturing

Revisions in Customs duty for multiple products in the recent Budget were done to spur domestic manufacturing, promote ease of trade, and reduce disputes.

India’s Customs duty collections are expected to exceed Rs 2 trillion for the third consecutive year in 2024-25 (FY25), according to the recent Budget estimates. The share of Customs duty in India’s gross tax receipts has more than halved in the past decade. It will account for 6.2 per cent of the gross tax collections in FY25— the lowest since FY16.

Customs duty collections are growing at a slower pace