Customs duty on imported tyres increased

The Government of India has increased the customs duty on imported radial car tyres from 10% to 15%. The move aims to curb imports of non-essential goods like tyres and narrow the current account deficit.

In recent times, the domestic tyre industry has been facing a slowdown due to rising imports. While this step is likely to promote investment in the tyre industry in India, the 25% import duty on raw materials is still higher than on finished tyres. 

According to media reports, tyre dealers have opposed the decision and have called for a roll back. It is said that tyre imports have already taken a hit by the depreciation in the value of the Indian currency against the US Dollar. 

Source: Economic Times