Budget decisions: Letter to BS on customs duty hike to impact imports

A step-by-step approach with adequate timelines should be in place to hike customs levies

This refers to “Budget decision on customs duty hike to impact imports of $85 billion in a year” (February 13). A K Bhattacharya has lucidly explained that the hike in customs duties on 40 categories of mass consumption, raw materials, components, consumables, FMCGs etc. will have wide impact. Despite this, imports are not going to be dropped and this abnormal hike (33 per cent to 100 per cent on an average) is going to push the inflation index up locally and some resentment globally, especially China, Thailand, Taiwan and crude edible oil suppliers such as Indonesia and Malaysia. The steep