On Wednesday, at midnight, the government raised tariffs for 19 goods, including jet fuel, air conditioners and refrigerators, with the aim of reducing imports of non-essential goods. The total import bill for shipping these items to the country in the last financial year was Rs 86,000, the Ministry of Finance stated in a statement.
Other items include washing machines, speakers, radial tires, jewelry, kitchenware and dishes, some plastic gods and cases.
“The central government has taken tariff measures to raise the basic tariffs to limit imports of certain imported items in order to reduce the current account deficit (CAD), and together the tariffs have been increased to 19 items,” the ministry said.
The import duty on air conditioners, refrigerators and washing machines (less than 10 kg) has been doubled to 20%.
These changes to the basic duty will take effect on 26 and 27 September, starting at midnight.
The reduction in non-core imports was one of five measures announced by the government to curb the widening of the current account deficit and capital outflows.
The Canadian dollar, the difference between foreign exchange inflows and outflows, rose to 2.4% of GDP in the quarter from April to June.