Ultra-rich may face higher taxes on private jets, jewellery in budget. Know more

economy

Budget
by 5paisa Research Team Last Updated: 2023-01-09T12:58:36+05:30

If you are a high-net-worth individual who owns a private jet, this one may be for you. 

In a bid to reduce imports and promote domestic manufacturing, the Centre has made a list of 35 items on which the customs duty is likely to be increased in the upcoming Budget, a report by The Economic Times (ET) said. 

This list includes items like private jets, helicopters, high-end electronic items, plastic goods, jewellery, high-gloss paper and vitamins.

According to the ET report citing an unnamed official, a list has been drawn up based on the inputs from various ministries that are being examined.

What has the government done so far in this regard?

The government has also reportedly issued quality control orders to curb the imports of these non-essential items.

What is the background to this?

In December, the Ministry of Commerce and Industry asked various ministries to make a list of imported non-essential items that can be considered for tariff hikes. The Centre has been cautious about the current account deficit, which rose to a nine-month high in the quarter ending September to 4.4 per cent. Deloitte, in a report released last week, said that it might worsen further.

Apart from the risk of a high import bill, the exports may also face pressure in FY24.

In Budget 2023, too, the Centre hiked import tariffs on several items like imitation jewellery, umbrellas and earphones.

When is the budget expected to be tabled?

The union budget is expected to be tabled on February 1.
 

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