The Union Budget 2024, unveiled by Finance Minister Nirmala Sitharaman, brings a mix of relief and challenges for various sectors. The budget features significant cuts in customs duties on certain items while increasing them on others, aiming to rationalize and simplify the tax structure. Here’s a detailed look at five items that have become cheaper and five that have become costlier.
Cheaper Items
1. Gold, Silver, and Platinum
The customs duties on precious metals have been slashed to 6% for gold and silver, and 6.4% for platinum. This move is expected to benefit jewelers and consumers alike, reducing the cost of these metals in the market.
2. Mobile Phones and Accessories
In a major relief for tech enthusiasts, the customs duty on mobile phones, chargers, and accessories has been reduced to 15%. This reduction is aimed at making technology more accessible and affordable.
3. Cancer Treatment Medicines
Three cancer treatment medicines have been exempted from basic customs duty, significantly lowering their cost. This is a crucial step towards making life-saving treatments more affordable.
4. Solar Panel Manufacturing Equipment
The list of exempted capital goods used in the manufacturing of solar panels has been expanded. This move supports the renewable energy sector by reducing the cost of essential manufacturing equipment.
5. Shrimp and Fish Feed
The customs duty on shrimp and fish feed has been reduced to 5%, benefiting the aquaculture industry. This reduction will help lower the cost of feed, supporting the growth of shrimp and fish farming.
Costlier Items
1. Telecom Equipment
The basic customs duty on specified telecom equipment has been increased from 10% to 15%. This hike could impact the telecom sector, potentially increasing the cost of telecom services and equipment.
2. Plastic Products
Customs duties on plastic products have been raised, aiming to curb plastic use and encourage environmentally friendly alternatives. However, this could lead to higher costs for plastic goods.
3. Ammonium Nitrate
The customs duty on ammonium nitrate has been increased from 7.5% to 10%. This chemical is widely used in fertilizers and explosives, and the hike may affect sectors reliant on these products.
4. Imported Garden Umbrellas
Garden umbrellas will now attract higher customs duties, making them more expensive. This change is part of the government’s efforts to promote domestic manufacturing.
5. Laboratory Chemicals
Customs duties on laboratory chemicals have been increased, potentially raising the cost of scientific research and development. This could impact industries and institutions reliant on these chemicals for testing and experimentation.
Additional Announcements
Tax Benefits
For salaried employees opting for the new tax regime, the standard deduction has been increased from Rs 50,000 to Rs 75,000. Additionally, the capital gains exemption limit on certain financial assets has been raised to Rs 1.25 lakh per year, providing relief to the middle and upper-middle class.
Conclusion
The Union Budget 2024 presents a balanced approach, offering relief through reduced customs duties on essential and high-demand items while increasing duties on others to promote domestic manufacturing and environmental sustainability. These changes reflect the government’s commitment to fostering economic growth, simplifying the tax structure, and addressing sector-specific needs.
