New Delhi: Finance Minister Nirmala Sitharaman told through announcements in this budget that which things will be cheap and what will be expensive. In fact, he talked about increasing and decreasing all the duties including custom duty, import duty on all things. Let us know what will be cheap and expensive due to these announcements.
What will be cheaper?
Leather, textiles, agricultural goods, packaging boxes, mobile phone chargers, gems, and jewelry will be cheaper. Custom duty on gems and jewelry has been reduced to 5 percent. Custom duty on cut and polished diamonds has also been reduced to 5 percent. Customs duty exemption on steel scrap has been extended for one year to provide support to MSMEs. Custom duty on mentha oil reduced. Customs duty has been exempted on mobile phone chargers, transformers, etc. to encourage domestic manufacturing.
What happened expensive?
The import duty on capital goods has been levied at 7.5 percent, eliminating the exemption from import duty. A foreign umbrella will also be expensive. Apart from this, excise duty will be levied at the rate of Rs 2 per liter on non-blending fuel from October this year. Customs duty on imitation jewelry has been increased so that its import can be reduced. To discourage the import of low-cost imitation jewelry, customs duty is being fixed in such a way that at least Rs 400 per kg duty is to be paid on its import.
What happened in the last budget, cheap and expensive?
Finance Minister Nirmala Sitharaman did not give any relief to the direct taxpayers in the Union Budget 2021. However, the government had also announced the imposition of agricultural infrastructure cess on many products including liquor, chickpea, peas, lentils. Nirmala Sitharaman proposes to review over 400 discounts in customs. Customs duty has been increased on many types of raw materials and duty has been removed on some steel products. Further, the duty on copper scrap was reduced from 5% to 2.5%. 2.5% duty was imposed on some parts of mobiles.
In the last budget, cotton, silk, plastic, leather, electronics items, auto parts, solar products, mobiles, chargers, imported clothes, gems, LED bulbs, fridge / AC, and liquor have become expensive in the budget. On the other hand, things like nylon clothes, iron, steel, copper items, gold, silver, and platinum became cheaper.
