funds: Commerce Ministry shares listing of products dealing with inverted responsibility construction

Inverted responsibility construction is a scenario when inputs are taxed at greater charges than completed merchandise, which may make home trade import dependent. “The ministry at all times shares such listing of products, the place customs duties on parts are greater than the completed merchandise,” mentioned the official.

The correction of such an obligation construction is necessary as producers need to pay the next worth for uncooked supplies when it comes to responsibility, whereas the completed merchandise land at decrease responsibility and price.

“We’ve got given our inputs to the finance ministry to have a look at that. Inverted responsibility construction isn’t economically environment friendly,” the official mentioned.

Finance minister Nirmala Sitharaman will current the interim funds on February 1.