Finance Minister Nirmala Sitharaman presented the Union Budget, highlighting the country’s economic health and outlook. She proposed several cuts on customs duties, stating that the number of duty rates was reduced in 2022-23 and will be rationalized after a six-month review.
She also emphasized the Narendra Modi-led government’s efforts to simplify and rationalize the GST tax structure. The budget papers reveal what has become more expensive and what is becoming cheaper.
What’s cheaper?
Cancer medicines: Customs duties on three cancer medicines have been exempted, making them cheaper for the common man. Moreover, medical X-ray machines will become cheaper.
Mobile phones and chargers: The finance minister has announced that basic customs duties on mobile phones, chargers and other mobile parts have been reduced by 15 per cent, making them more affordable.
Gold, platinum and silver: Get ready to pay lesser for these precious metals after Finance Minister Nirmala Sitharaman announced that customs duty on gold and silver has been reduced to six per cent and that of platinum to 6.4 per cent. Industry officials say this could boost retail demand and help curtail smuggling in the world’s second-biggest consumer of bullion.
Minerals: The custom duties for 25 critical minerals has been exempted.
Fish feed and shrimp: These items will get cheaper after the Centre announced a reduction of custom duties to five per cent.
Solar panels, solar cells and electric vehicles: Finance Minister Sitharaman has also made a proposal to increase the list of exempted capital goods used in the manufacturing of solar panels.
Ferro nickel, and blister copper: The government has removed the basic customs duty for these metals.
Leather goods: The government has announced that leather products will become cheaper.
What’s more expensive?
However, there are some items that will get dearer after the budget announcement.
Ammonium nitrate: The government has increased customs duty to 10 per cent, making it more expensive.
Plastic products: These items will see a hike in prices as the government has increase the customs duties for the same. The government has also increased customs duties to 25 per cent for non-biodegradable products.
Specified telecom equipment: This Union Budget won’t be a reason to smile for the telecom industry. While mobile phones have been made cheaper, some equipment has been more expensive by increasing the basic customs duty to 15 per cent from 10 per cent.
Equity investments held for less than one year: The tax on such assets has been to 20 per cent from 15 per cent.
Shares held for more than 12 months: The tax on shares that are held for more than a year has been increased to 12.5 per cent from 10 per cent.
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