Finance Minister Nirmala Sitharaman presented her seventh Union Budget today for the fiscal year 2024-2025. This budget, the first under the BJP-led NDA government's new term, promises significant changes across various sectors, from infrastructure to social welfare.
Among the key announcements, Sitharaman revealed substantial reductions in customs duties on several items, aiming to make essential goods more affordable. Specifically, the budget introduces lower duties on cancer medicines and mobile phones, potentially leading to lower retail prices. Additionally, imported gold, silver, leather goods, and seafood will also become more affordable.
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"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 stated during her Budget 2024 presentation in Parliament.
The reduction in customs duties on gold and silver to 6% is expected to stimulate retail demand and help mitigate smuggling issues in the world's second-largest bullion consumer. However, increased gold demand could impact India's trade deficit and place additional pressure on the rupee.
Items Becoming Cheaper:
Mobile Phones: Basic customs duty on mobile phones and chargers will drop to 15%. Gold and Silver: Customs duties on these metals will be reduced to 6%. Platinum: Customs duties on platinum will decrease to 6.5%. Cancer Drugs: Three additional cancer treatment drugs will be exempt from customs duties. Seafood: Basic customs duty on certain brood stocks, shrimps, and fish feed will be cut to 5%. Solar Energy Parts: Customs duties on parts related to solar energy will not be extended. Ferronickel and Blister Copper: Basic customs duties on these materials will be removed. Footwear: Customs duties on leather and footwear manufacturing will be reduced.
Items Becoming Costlier:
Ammonium Nitrate: Customs duty will rise to 10%.
Non-Biodegradable Plastics: Duty on these plastics will increase to 25%.
Telecom Equipment: Basic customs duty will go up to 15% from 10%.
Tax Collection at Source (TCS): A 1% TCS will be applied to notified goods exceeding Rs 10 lakh.
Solar Glass: Customs duty on solar glass will not be extended.
The budget also includes an increase in the standard deduction for salaried employees under the new tax regime, raising it from Rs 50,000 to Rs 75,000.
In her previous budget, Sitharaman had announced reductions in import taxes on components like camera lenses to boost domestic manufacturing.
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