Union Budget 2024: What's becoming cheaper or more expensive?

29 July, 2024

Synopsis

• The Union Budget 2024-25 focused on affordability and boosting domestic manufacturing.

• Cancer medicines, mobile phones, gold, silver, platinum, and seafood will see reduced customs duties.

• Critical minerals and materials for solar energy and footwear manufacturing are exempted from customs duties.

• Duties on telecom equipment, ammonium nitrate, plastic goods, and PVC flex banners have increased.
  
  

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 bringing changes across various sectors, including agriculture, manufacturing, and services. The budget, which adopts a bottom-up approach, promises affordability in essential goods, boosts domestic manufacturing, and significant changes in the capital gains and income tax regimes. List of goods that become cheaper:

Affordable medicines and precious metals

1. Cancer medicines: Three additional cancer treatment drugs are exempted from customs duties.

2. Gold, silver, and platinum: Customs duties are reduced to 6% on gold and silver, and 6.5% on platinum.
   
   

Boost to the mobile phone industry

1. Mobile phones and chargers: Basic Customs Duty (BCD) on mobile phones, mobile Printed Circuit Board Assembly (PCBA), and mobile chargers have been reduced from 20% to 15%. This move will make smartphones more affordable and promote the ‘Made In India’ manufacturing sector.
   
   

Encouragement for the seafood industry

1. Fish feed and shrimp: BCD on certain brood stocks, shrimp, and fish feed has been reduced to 5%, benefiting producers and exporters of seafood products.
   
   

Support for the solar energy sector

1. Solar cells and panels: The list of exempted capital goods for manufacturing solar cells and panels is expanded, promoting renewable energy initiatives.
   
   

Leather and footwear manufacturing

1. BCD on real down-filling material from duck or goose, used in the leather and footwear manufacturing sector, is reduced, promoting the domestic production of these goods.
   
   

Critical minerals​​​​​​​

1. Twenty-five critical minerals, essential for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics, are exempted from customs duties. BCD on two of them is reduced.
   
   

Steel and copper​​​​​​​

1. Ferronickel and blister copper: Basic customs duties on these materials are removed to support domestic manufacturing.
   
   

List of goods likely to become costlier
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Telecom equipment

1. The BCD on PCBA of specified telecom equipment is increased from 10% to 15% to boost domestic telecom gear manufacturing.
   
   

Ammonium nitrate​​​​​​​

1. Customs duty on ammonium nitrate, used in fertilisers and explosives, is raised from 7.5% to 10%.
   
   

Plastic goods​​​​​​​

1. BCD on non-biodegradable plastics is raised from 10% to 25%, aiming to curb environmental hazards.
   
   

PVC flex banners

1. The BCD on PVC flex banners has been increased from 10% to 25% to mitigate their environmental impact.
   
   

Economic growth and inflation

The Union Budget 2024-25 substantially relieved several key sectors while imposing higher duties on environmentally detrimental and non-essential goods. These measures aim to drive economic growth, support domestic manufacturing, and ensure the affordability of essential items for the common people.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.