'Don't want to raise tariffs to high levels as industry becomes complacent'

The Central Board of Indirect Taxes and Customs Chairman SANJAY KUMAR AGARWAL says there has been a fourfold increase in the goods and services tax (GST) collections from online gaming to ₹1,150 crore every month. In conversation with Asit Ranjan Mishra, Agarwal explains the rationale behind the Customs duty cuts on silver and gold, among other Budget provisions. Edited excerpts:

- Asit Ranjan Mishra, Agarwal

The finance minister talked about a comprehensive review of the rate structure over the next six months. What is the expected outcome of this exercise?

his exercise will be carried out, and the outcome will be reflected in the next year's Budget. We will review the Customs duty rates on various items, and wherever a correction is needed, it will be implemented in this exercise.

In the past five to six years, Customs duties have gone up significantly. Are we looking at a course correction from here on out?

Customs duties have increased where necessary, due to requirements such as phased manufacturing programme or tariff protection for the industry.

Tariffs are typically kept at reasonable levels; I don't want to increase them to very high levels because it could make the industry complacent and less competitive.

While high tariffs may serve domestic demand, they could hinder export competitiveness. Duties were raised based on the needs at the time, but given the current circumstances, duty rates can definitely be lowered. This will be done on a case-by-case basis.