Duty free madness begins: Govt increases cap by five times to Rs 25,000

Flyers coming in from abroad can buy goods upto Rs 25,000 from duty-free shops in international airportsacross the country, a five-time jump from the current limit.

The move follows complaints from the travellers that the limit was low and needed to be revised. They had cited instructions issued late last year by Reserve Bank of India (RBI) that permitted export from and import into India of Indian currency up to an amount not exceeding Rs 25,000.

"Passengers can now purchase goods at duty-free shops in Indian rupees up Rs 25,000 as against the earlier ceiling of Rs 5,000," a senior customs official said citing a recent order by Central Board of Excise and Customs (CBEC) in this regard.

He said that the duty-free shops operators have also been suggested to display the rate of exchange published by the commercial banks for conversion of foreign currency or the rate of exchange notified by the CBEC on a fortnightly basis for import and export of goods.

The senior customs officials in-charge of the airports have been asked to ensure that information relating to the use of Indian currency should be displayed at all the duty-free shops.

Similarly, the websites of duty-free shops or the airports must be kept accurately updated with regard to the facility and limit in use of Indian currency for making purchases, as per the CBEC's order.

The duty-free shops operators have been asked that they display the prices of goods in Indian Rupees at the earliest, it said.