Meaning of inverted duty structure

This query is : Resolved 

19 January 2013 Please explain the meaning of the term 'Inverted Duty Structure'.


25 January 2013 Companies manufacturing tyres, electrical equipment and medical instruments are suffering the most due to inverted duty structure, under which finished goods are taxed at lower rates than raw material, according to a survey by industry body Ficci.

Inverted duty structure impacts the domestic industry adversely as it has to pay a higher price for raw material in terms of duty, while the finished product lands at lower duty and costs low.

25 January 2013 Sir, this is the piece of news where I had come across this term. But this does not explain the meaning of the term clearly. Please explain the meaning in clear terms.
Regards

28 May 2018 Tax paid on inputs are higher than tax paid on output i.e supplies


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