Uniform Import Duty

Over the last decade, there has been sustained and concerted efforts towards simplification and rationalisation of import tariff structure. The policy stance has been to put in place a tariff structure comparable to international standards particularly to that of its immediate competitors. Against this backdrop, this study has examined the uniform tariff rates in the Indian context. The study is a logical step forward to the recommendations in Kelkar Report (2002) and approaches broadly the recommendations of the Inter-Ministerial Group on Custom Tariff Structure (2001) set up by the government of India. The study recommends a uniform tariff rate at 15 per cent for all import items including defence with effect from April 1, 2004. In terms of handling the transitional problem, the study suggests the creation of Drug Fund and Defence Fund. The proceeds from the Drug Fund could be utilised for assisting primary health and from the Defence Fund for rehabilitating the defence personnel and their families.