As the Union Budget 2024-25 presented by the Finance Minister Nirmala Sitharaman on Tuesday tries to make a balance between a continued economic stability and its other priorities as per the changed political dynamics, has announced a handful of direct and indirect tax reforms that could benefit the general public.
The key changes that it recommended in this regard are exemptions and rate variations basic customs duties. As a result, certain products in the domestic market will be more affordable while some others will become costly.
Most important among the products on which the government wanted to reduce prices are a few high cost cancer medicines. The Budget has proposed complete exemption of basic customs duty on these medicines.
As the customs duties on mobile phones, mobile phone chargers etc., are reduced, these products will hopefully see an immediate price cut in the local market. Similarly, precious metals like gold, silver and platinum too will see drop in prices along with some of the critical minerals used in the power industry as customs duties on these products have also been cut.
However, certain telecom components and non-biodegradable plastics will get costlier due to the hiked customs duty.
What Will Get Cheaper
The Budget 2024 recommends reduced customs duty on mobile phones, and chargers to 15% from the current 20%. The Finance Minister also announced a cut in customs duties on three more imported cancer medicines. The cost of gold, silver, leather goods, and seafood is also expected to see a decrease following the reduction in their import duty. The customs duty on gold and silver will be lowered to 6%, while the duty on platinum will be reduced to 6.4%.
The move is aimed at enhancing domestic value addition in gold and other precious metal. This is aimed at supporting the gems and jewellery industry, which has long sought such reductions, the government also proposed a reduction in the basic customs duty on certain brood stocks, shrimps, and fish feed to 5 percent.
The FM also said in her Budget speech that three more cancer drugs and some 25 critical minerals will be exempted from customs duty. Since most of the latest cancer medicines, especially the biological drugs, are imported in the domestic market and the patient access to these treatments is less due to their exorbitant prices, the government aims to make them affordable to Indian patients. With this Budget announcement three more drugs have been added to the customs duty exempted list.
Prices of certain other industrial products such as ferro nickel and blister copper also will be get reduced as government has removed basic customs duties on them as well. Additionally, the Budget has also proposed customs duty exemption for solar panels, cells and allied products used in its manufacturing.
Things To Get Costlier
The Budget proposes an increase of customs duty on ammonium nitrate by 10% and on non-biodegradable plastics by 25%. There is a hike proposed in customs duty on certain telecom products, including industrial equipment as well. So these products will become costlier. Non-bio-degradable plastic products will also see a price rise due to increase in basic customs duty them.
Products To Get Cheaper
Mobile phones
Mobile chargers
Cancer medicines
Gold
Silver
Leather goods
Seafood
Solar panel and accessories
Platinum
Critical Minerals
Ferro nickel
Blister copper
Products to Get Costlier
Telecom products
Non-biodegradable plastics to get costlier