India will significantly raise import tariffs, and

2022-08-18
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India will significantly raise import tariffs, and the LED industry will also be affected.

on February 1 this year, Indian Finance Minister Arun Jaitley submitted the 2018-2019 fiscal budget proposal to the parliament. In the proposal, it is planned to raise tariffs on auto parts, lithium batteries, clocks, toys and other products, and charge a 10% social welfare surcharge on the basis of the basic tariff, which is intended to "promote the development of local manufacturing industry and create more jobs for the country."

1. Which products are mainly affected

the tax rate increased from 15% to 20%

the tax rate of some accessories (batteries, chargers, suitable for the construction of bulk commodity warehousing, distribution, trading bases and logistics distribution centers serving Southeast Asia and inland hinterland) rose from 10% to 15%

the tax rate of some lcd/led/oled panels and TV components increased from 7.5% to 15%

for some auto parts, what kind of testing machine will be used for the longest time, including spark ignition engine, compression ignition engine, crankshaft, electric ignition equipment, etc., the tax rate will rise from 7.5% to 15%

the tax rate of artificial jewelry increased from 15% to 20%

the tax rate of some beauty products (perfume, cosmetics, skin care products) increased from 10% to 20%

the tax rate of clocks, smart watches and wearable devices increased from 10% to 20%

the tax rate of sunglasses increased from 10% to 20%

the tax rate of footwear increased from 10% to 20%

the tax rate of some toys increased from 10% to 20%

the tax rate of edible oil such as peanut oil and safflower seed oil increased from 12.5% to 30%, and the tax rate of refined edible vegetable oil increased from 20% to 35%

2. What is the social welfare surcharge

for the additional social welfare surcharge, it will replace the education cess, secondary higher education cess

about the development direction of experimental machine technology, the previous education cess charged a 3% tax on imported goods; After the proposal is passed, the social welfare surcharge will be 10%. At the same time, gasoline, high-performance diesel, silver and gold enjoy a preferential tax rate of 3% of social welfare surcharges. Imported products that were exempted from education surtax before can still be exempted from social welfare surcharges later

3. What is India's purpose in doing so

this fiscal plan requires a substantial increase in import tariffs, which is actually aimed at "made in China", aiming to further strengthen the strategy of "make in India" and "digital India" proposed by the Indian government, and transform India into a manufacturing power

according to the statistics of the Indian Bureau of business information statistics and the Indian Ministry of Commerce, the trade volume between India and China in 2016 was $69.62 billion, and China maintained a surplus of $51.69 billion with India. From April to October last year, India's trade deficit with China reached US $36.73 billion. China has become India's largest trading partner and the largest source of goods. Most of the products China exports to India are high value-added products, while most of the products India exports to China are low value-added products

due to India's heavy dependence on Chinese products and its huge trade deficit with China, India hopes to raise tariffs on imported goods, promote Indian manufacturing and protect its enterprises; At the same time, some manufacturers are forced to set up factories in India to reduce tariff costs

according to statistics, in the first two months of 2018, India has initiated as many as eight anti-dumping investigations against China, and India has become the first country in anti-dumping against China

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