Budget 2024-25: Cheaper and Costlier

New Delhi: Finance Minister Nirmala Sitharaman proposed an exemption on customs duty on certain cancer medicines and a reduction in duties on mobile phone parts and chargers, aimed at bringing down their prices in the retail market.

“With a three-fold increase in domestic production and an almost 100-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured. In the interest of consumers, I now propose to reduce the BCD on mobile phones, mobile PCBAs, and mobile chargers to 15 percent," said Sitharaman in her Budget speech.

She proposed to fully exempt three more cancer medicines from customs duties.

Imported gold, silver, leather goods, and seafood will also get cheaper, as duties are invariably lowered on them. A duty cut on gold would boost retail demand and help curtail smuggling in the world's second-biggest bullion market.

"To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 percent and that on platinum to 6.4 percent."

She also proposed changes in the customs duty on X-ray tubes and flat panel detectors for use in medical X-ray machines under the Phased Manufacturing Programme, so as to synchronise them with domestic capacity addition.

Also, she proposed to fully exempt customs duties on 25 critical minerals and reduce basic customs duties on two of them.

Minerals such as lithium, copper, cobalt, and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics, said the finance minister.

Putting energy transition into focus, as it is critical in the fight against climate change, the finance minister proposed to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country.

However, in view of the sufficient domestic manufacturing capacity of solar glass and tinned copper interconnects, it was proposed not to extend the exemption of customs duties provided to them.

To enhance competitiveness in marine products, the duty on certain broodstock, polychaete worms, shrimp, and fish feed was reduced to 5 percent, besides exempting customs duty on various inputs for the manufacture of shrimp and fish feed.

Moving on to leather and textiles, a reduction in duty was announced for various items. "...to enhance the competitiveness of exports in the leather and textile sectors, I propose to reduce BCD on real down filling material from duck or goose," Sitharaman said.

To reduce the cost of production of steel and copper, two important raw materials, it was proposed to remove the customs duty on ferro nickel and blister copper.

"I am also continuing with nil BCD (customs duty) on ferrous scrap and nickel cathode and concessional BCD of 2.5 percent on copper scrap."

On the flip side, to support chemicals and petrochemicals, an increase in duty was proposed. To support existing and new capacities in the pipeline, an increase in duty on ammonium nitrate from 7.5 to 10 percent would be applicable.

PVC flex banners are non-biodegradable and hazardous for the environment and health. To curb their imports, a proposal was made to raise the duty on them from 10 to 25 percent.

To incentivize domestic telecommunication equipment manufacturing, a proposal to increase the duty from 10 to 15 percent on PCBA (printed circuit board assembly) of specified telecom equipment was made.

Explaining her rationale behind the indirect tax tweak, Sitharaman said her proposals for customs duties intend to support domestic manufacturing, deepen local value addition, promote export competitiveness, and simplify taxation while keeping the interest of the general public and consumers surmount.

To bolster the Indian start-up eco-system, boost the entrepreneurial spirit, and support innovation, Finance Minister Nirmala Sitharaman proposed to abolish the so-called angel tax for all classes of investors.

This was a proposal from the industry for a long time, and this announcement will drive more investments in startups in particular. Startups function as engines of economic growth, playing a crucial role in generating new jobs, ideas, products, and services. (ANI)

 Also Read: Budget: Income tax sops for salaried individuals (sentinelassam.com)

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