INVERTED DUTY STRUCTURE
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INVERTED DUTY STRUCTURE
Subject: Economy
Context:
Budget may try to straighten ‘inverted duty’ structure to reduce its impact on the domestic industry.
Concept:
The inverted duty structure denotes prevalence of higher taxes on inputs than on finished items.
Impacts of Inverted Duty Structure:
According to FICCI, Inverted customs duty structure on finished goods is eroding competitiveness of the manufacturing sector and discouraging domestic value addition, as the same tariff on the raw material or intermediate product is lower.