Customs Duties: Revenue Significance and Legislative Framework

Abstract

Customs duties constitute a significant source of revenue for the Central government although its importance has declined over a period of time due to the liberalisation of the economy and the policy of progressively reducing import duties. This paper analyses the trends in import duties since Independence and examines the revenue significance of customs duties among indirect taxes. The paper also discusses the legislative framework with regard to customs duties to understand the various categories of customs duties that are in force in India.