Nirmala Sitharaman made many important announcements about the budget, one of which was a significant decrease in customs charges on several commodities. Further, the goal was to lower the cost of necessities. In the second-largest bullion consumer in the world, the 6% customs duty cut on gold and silver is anticipated to boost retail demand and also lessen smuggling concerns. On the other hand, rising demand for gold might affect India’s trade imbalance and put more pressure on the rupee.
“The government will exempt three more cancer treatment drugs from customs duties. We are also reducing the basic customs duty on mobile phones, chargers, and other mobile components,” Sitharaman mentioned.
Things Getting Cheaper
- Cell phones: The basic customs duty on cell phones and chargers will be reduced to 15%.
- Gold and Silver: The basic customs duty on these metals will be lowered to 6%.
- Platinum: The basic customs duty on platinum is going to drop to 6.5%.
- Cancer Drugs: Three more cancer treatment drugs will not be subject to customs duties.
- Seafood: The basic customs duty on certain brood stocks, shrimp, and fish feed will be lowered to 5%.
- Solar Energy Parts: Customs duties on parts related to solar energy will not be raised.
- Ferronickel and Blister Copper: The basic customs duty on these materials will be eliminated.
- Footwear: The basic customs duty on leather and footwear manufacturing will be also decreased.
Things Getting More Expensive
- 10% more will be charged in customs for ammonium nitrate.
- Plastics that are not biodegradable: Further, a 25% duty will be applied to these materials.
- Telecom Equipment: The 10% basic customs duty will increase to 15%.
- Tax Collection at Source (TCS): Notified products valued at more than Rs 10 lakh would be subject to a 1% TCS.
- Solar Glass: There will be no increase in customs fees for solar glass.
Sitharaman Raises Standard Deduction, Boosts Domestic Manufacturing
Further, the standard deduction for paid personnel under the new tax regime will increase from Rs 50,000 to Rs 75,000 as part of the budget. Sitharaman had also promised to increase home production by lowering import levies on parts like camera lenses in her previous budget.
