A worker arranges food packets inside a retail store in Kolkata.Reuters

The Finance Ministry has decided to hike import duties on 19 non-essential items that include imported ACs, refrigerators, washing machines and others in order to curb widening current account deficit (CAD) and a weakening rupee.

The hike in import duties varies from five per cent to 25 per cent and changes in rates are effective from September 27 (Thursday). The aviation fuel attracted five per cent hike. The increase, however, is not expected to increase airfare.

As per the revised import duty rate, footwear attracted five per cent hike. Hike imposed on AC, refrigerator, washing machine, household items of plastics (tableware and kitchenware), office stationery and others may see public spending a little money from now.

Arun Jaitley
Union Finance Minister, Arun Jaitley.Reuters

It needs to be noted that Finance Minister Arun Jaitley while announcing measures to increase capital inflows and check rupee volatility earlier this month, had said that an extensive policy had been made to cut non-essential imports and boost exports.

The move comes against the backdrop of the CAD touching 2.4 percent in the June quarter. The import duty hike is part of one of this policy measures.

Following are the 19 items that are slightly expensive from Thursday.

Item Present rate (%) Revised rate (%)
Air conditioners 10 20
Household refrigerators 10 20
Washing machines less than 10 Kg 10 20
Compressor for air conditioners and refrigerators 7.5 10
Speakers 10 15
Footwear 20 25
Radial Car Tyres 10 15
Non-industrial diamond (other than rough diamonds), i.e., cut and polished diamond 5 7.5
Diamonds-semi processed, half cut or broken 5 7.5
Lab-grown diamonds 5 7.5
Cut and polished Colored gemstone 5 7.5
Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal 15 20
Articles of Goldsmith or silversmith wares and parts thereof of precious metal or of metal clad with precious metal 15 20
Bath, shower bath, sink, wash basin, etc. of plastics 10 15
Articles of plastics for conveyance and packing such as boxes, case, containers, bottles, insulated ware etc. 10 15
Tableware, kitchenware and other household items of plastics 10 15
office stationery, fitting for furniture's, decorative sheets, statuettes, beads, bangles etc. 10 15
Trunks, Suitcase, Executive cases, Brief Cases, travel bags and other bags etc. 10 15
Aviation turbine fuel 0 5