Finance Minister Nirmala Sitharaman unveiled the Union Budget for fiscal year 2024-2025, marking the beginning of the BJP-led NDA government’s new term. The budget introduces significant alterations in customs duties across various sectors, aiming to impact affordability and economic dynamics.
Here’s a list of items becoming cheaper and costlier due to customs duty overhaul in Budget 2024
Items Becoming Cheaper
Mobile Phones and Chargers: The basic customs duty on mobile phones and chargers will decrease to 15%, promoting affordability in the electronics sector.
Gold, Silver, and Platinum: Customs duties on gold and silver will be slashed to 6%, aiming to boost retail demand and address smuggling concerns in one of the world’s largest bullion markets. Platinum will also see a reduction to 6.5%.
Cancer Drugs: Three additional cancer treatment drugs will be exempt from customs duties, making critical medication more accessible.
Seafood and Solar Energy Parts: Certain seafood items and parts related to solar energy will see reductions in customs duties, fostering growth in these respective sectors.
Ferronickel, Blister Copper, and Footwear: Basic customs duties on ferronickel, blister copper, and leather goods for footwear manufacturing will be removed, supporting domestic production and affordability.
Items Becoming Costlier
Ammonium Nitrate and Non-Biodegradable Plastics: Customs duties on ammonium nitrate will increase to 10%, while non-biodegradable plastics will see a hike to 25%, reflecting environmental and security concerns.
Telecom Equipment: The basic customs duty on telecom equipment will rise to 15% from the previous 10%, affecting the cost structure of telecommunications infrastructure.
Tax Collection at Source (TCS): A new 1% TCS will be applicable on notified goods exceeding Rs. 10 lakh, enhancing tax compliance measures.
Solar Glass: Customs duty on solar glass will not be extended, affecting the cost dynamics in the solar energy sector.
Impact and Implications
The reduction in customs duties on essential items like mobile phones, cancer drugs, and precious metals aims to reduce retail prices and stimulate demand. However, adjustments in duties on telecom equipment and environmentally sensitive materials like non-biodegradable plastics signify strategic policy shifts towards security and sustainability.
The budget’s focus on balancing affordability with strategic economic goals reflects the government’s intent to foster growth while addressing pressing societal and environmental challenges.
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