Daijiworld Media Network - New Delhi (SHP)

New Delhi, Jan 19: The commerce ministry has proposed a new move to reduce the import of non-essential goods, including restricting the purchase of tax-free alcohol to one bottle at duty-free shops.

The ministry has also recommended to its finance counterpart that purchase of cigarette cartons at duty-free shops should be prohibited.

These recommendations are part of proposals made by the commerce ministry for the forthcoming Budget, which would be presented by finance minister Nirmala Sitharaman on February 1.

As of present, the inbound international passengers are allowed to buy two litres of alcohol and a carton of cigarette from duty-free shops. Taking reference from some of the foreign countries that allow only one litre of liquor to international passengers, the ministry is of the opinion that even India should be following the same practice.

This suggestion assumes significance at a time when the government is looking at various ways to curb the import of non-essential goods into the country to rein in the trade deficit, PTI reported.

A duty-free shop is where an inbound international passenger can generally purchase goods worth about Rs 50,000 without paying any import duty.

If sources are to be believed, the commerce ministry has also suggested an increase in customs duty on several products like paper, footwear, rubber items and toys to promote 'Make in India' and boost manufacturing growth.

The ministry has proposed rationalisation of basic customs or import duty on over 300 items from different sectors, including furniture, chemicals, rubber, coated paper and paper boards.