• In a recent development, NITI Aayog member has favoured imposing a border adjustment tax (BAT) on imports to provide a level-playing field to domestic industries.

What is BAT?

• BAT 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.
• Various taxes like electricity duty, mandi tax, clean energy cess, royalty etc lead to escalation of price.
• Such taxes which are imposed on domestic goods, give them (imported goods) a price advantage in India.