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Aug 2013
Govt shelves hike in import duties on luxury goods

The government has decided not to hike import duty on luxury goods , reports CNBC-TV18's Aakansha Sethi.

Till Wednesday, the government had indicated that duty on the import of luxury items would be effected as a part of measures to stamp out speculators.

On Friday, the finance ministry indicated that an orderly movement in the rupee could be tolerated and the government’s measures would calibrated. So, it unlikely to see any more measures from the government or the Reserve Bank of India (RBI) to tame the rupee.

Regarding import duties, the government has prepared a report which recommends reduction in import duties on high-end luxury goods and electronic goods.

The DEA (department of economic affairs) secretary on Friday explained that with the import duty hikes in gold, silver and platinum, the increase in import duties on high-end luxury goods and electronic goods may not be required anymore.

Clauses in the free trade agreements (FTAs) signed by India with other nations and the World Trade Organisation (WTO) restrain the government’s ability to substantially hike import duties.