The Budget 2020 has doubled basic custom duty from 10% to 20% on a whole lot of imported products such as food grinder, juicer, shaver, epilator, geyser, room heater, hairdryer, electric iron, oven, coffee and tea maker, toaster and ceiling fan. The customs duty on wall fan has been hiked from 7.5% to 20%. consumer will have to pay 10% more for imported kitchen appliances and electronic personal care products, and shell out Rs 200-700 more on air-conditioners, washing machines, and refrigerators with the budget enhancing taxes on these products or their components. Now Consumer will have to pay 10% more on imported kitchen appliances and electronic personal care products, which may cost Rs 200-700 more on air-conditioners, washing machines and refrigerators with the budget enhancing taxes on these products or their components.
Imported home appliances products such as food grinder, juicer, shaver, epilator, geyser, room heater, hairdryer, oven, electric iron, coffee and tea maker, toaster and ceiling fan will cost a bit higher as the budget has doubled the basic custom duty on this products will increase from 10% to 20%. The custom duty on wall fan has been hiked from 7.5% to 20%. It also increased the import duty on components for home appliances like refrigerators, washing machines and air-conditioners by 2.5%. This includes refrigerator and air-conditioner compressors where custom duty was increased from 10% to 12.5%, while that of small motors used in washing machines and other products from 7.5% to 10%.
According to Homegrown contract manufacturer, Dixon NSE -1.63 % Technologies chairman Sunil Vachani custom duty imposed on small appliances will boost domestic manufacturing. “This will boost make in India for small and kitchen appliances. Also, Shekhar Bajaj CMD of Bajaj Electricals said the proposed import duty on kitchen appliances and personal care products will prevent dumping of products from China with the US sanctions. he also stated that “Chinese companies have surplus capacities and this import duty will prevent any indiscriminate imports.
Some experts also believe that lowering personal income tax rates and measures announced to boost the rural economy will help the growth of the consumer electronics industry and the increment of custom duty on home appliances products is one of the vital steps towards establishing a robust, ecosystem for domestic manufacturing while also giving a boost to exports….Also, the increase in disposable income will drive consumption for the consumer durables industry which experienced flat growth in this fiscal.