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GTRI Unveils Blueprint to Overhaul India’s Tariffs and Customs

The proposal follows the finance minister’s pledge to revamp customs procedures, creating a window for action.

Overview

  • GTRI proposes zero duty on most industrial inputs with a 5% standard rate on finished goods within three years.
  • The blueprint seeks to eliminate inverted duty structures and rationalise extreme rates such as the 150% duty on alcohol.
  • GTRI argues tariffs have lost fiscal relevance, citing duties at 6% of gross tax revenue, 3.9% of import value, and a revenue base concentrated in fewer than 10% of tariff lines.
  • It calls for a single online schedule of all import duties with self-contained notifications and for policy to be based on total duty rather than headline rates.
  • Operational steps include redeploying officers to audits and origin checks, posting staff overseas to help exporters, aligning duty-drawback with eight‑digit HS codes, and easing approvals for inland depots and freight stations.