While gold and silver is expected to become more affordable, the government plans to increase customs duties on telecom products.
Finance Minister Nirmala Sitharaman, on July 23, presented her seventh Union Budget for the fiscal year 2024-2025. This latest budget is the first under the BJP-led NDA government's newly-elected term, and offers vital changes across infrastructure to social welfare, among other sectors. Not just that, Sitharaman revealed certain reductions in customs duties on several items, which will make those goods affordable.
Finance Minister Nirmala Sitharaman announced lower duties on cancer medicines and mobile phones. "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 said during her Budget 2024 presentation.
Meanwhile, price cuts on imported gold, silver, leather goods, and other items have also been introduced. Hence, these items will certainly get cheaper after the Budget 2024. "To enhance domestic value addition in gold and precious metal jewellery, I propose to reduce customs duties of gold and silver to 6%," FM Nirmala Sitharaman said. Additionally, the government plans to exempt customs duty on 25 critical minerals as well.
Following the Budget 2024 announcement, the following items will become more affordable.
Mobile Phones: The customs duty on mobiles, chargers, and accessories will now be cut down to 15%.
Gold and Silver: The customs duty on imported gold and silver has been reduced 6%.
Platinum: Customs duty on platinum has been cut down to 6.4%.
Cancer Drugs: Three cancer treatment medicines, namely Trastuzumab Deruxtecan, Osimertinib and Durvalumab, have been exempted from basic customs duty.
Seafood: Customs duty on certain brood stocks, shrimps, and fish feed will now be 5%.
Solar Energy Parts: Customs duties on parts needed for solar energy have not been extended, and the FM has proposed expanding the list of exempted capital goods required for solar panel manufacturing.
Ferronickel and Blister Copper: Basic customs duties on such materials will be removed post the Budget 2024 implementation.
Down-filled jackets, leather and textile garments: Customs duties on manufacturing of these products too will witness a cut.
Meanwhile, customs duties on 25 critical minerals for sectors like nuclear energy, renewable energy, space, defence, and others, have been completely removed.
With an increase in custom duties, the following products will become more expensive:
Ammonium Nitrate: The government has increased the custom duty ammonium nitrate to 10%.
Non-Biodegradable Plastics: Custom on such plastics will be amped up to 25%.
Telecom Equipment: Telecom products will become less affordable since a rise in the basic customs duty from 10% to 15% has been announced.
Tax Collection at Source (TCS): Any notified goods exceeding Rs 10 lakh will witness an application of 1% TCS.
Solar Glass: Customs duty on solar glass will not be extended anymore.
Standard deduction for salaried employees: An increase in the Standard deduction for salaried employees under the new tax regime, from Rs 50,000 to Rs 75,000, has also been introduced. There will also be an increased tax deduction on family pension for pensioners to ₹25,000 from ₹15,000..
Meanwhile, as per the Economic Survey 2024, India's GDP is expected to grow between 6.5% and 7% this year. Hence, with the 2024 budget, some everyday items will get cheaper while others will cost more to the common man.
