13) Border Adjustment Tax

Question 1

Why is this in news ?

Answer 1

There’s always a complaint by the Indian industry that apart from the main taxes the Govt also imposes various domestic taxes like Electricity duty, clean energy cess, royalties, Biodiversity fees etc. Thus they become much more costlier than the imported goods which are not levied with such huge cesses

Question 2

Now what is Border Adjustment Tax ?

Answer 2

It is a duty that is proposed to be imposed on imported goods in addition to the customs levy that gets charged at the port of entry

Question 3

What principle is thus used in BAT ?

Answer 3

Destination principle of taxation

Question 4

Who has suggested this tax ?

Answer 4

NITI Aayog member – to make a level playing field