New Delhi: Gold and silver are set to become cheaper as Finance Minister Nirmala Sitharaman has proposed rationalisation in customs duty on imports of these precious metals in the Union Budget for 2021-22.
As per the proposal of the FM, the duty on gold and silver will be reduced to 7.5% from 12.5%. In July, 2019, the import duty on the items was hiked to 12.5% from 10% resulting in rise in the prices of these precious items.
“Gold and silver presently attract a basic customs duty of 12.5%. Since the duty was raised from 10% in July 2019, prices of precious metals have risen sharply. To bring it closer to previous levels, we are rationalizing custom duty on gold and silver,” Sitharaman said in her budget speech.
On the other hand, a large number of commonly used items, including refrigerators, air conditioners, LED lights and mobile phones, will become more expensive due to hike in customs duty on imported parts.
While the import duty was zero in mobile parts earlier, the Finance Minister has proposed 2.5% budget on this item from this fiscal. Similarly, custom duty on refrigerators and AC compressors has been hiked from 12.5% to 15%.
Moreover, auto parts and gemstones, which are imported to India from foreign countries will become expensive. The prices of solar cell, inverters and solar lantern will also increase.
Here is a list of all things that would get costlier or cheaper once the budget is implemented.
Items To Become Costlier:
Compressors for refrigerators and air conditioners,
-LED lamps, parts and spares such as printed circuit board,
-Raw silk and cotton,
-Solar invertors and lanterns,
-Automobile parts such as safety and toughened glasses, windscreen wipers, signalling equipment,
-Mobile phone parts like PCBA, camera module, connectors, back cover, side keys,
-Mobile phone charger components,
-Inputs or raw materials of Lithium-ion battery,
-Ink cartridges and ink spray nozzle,
-Finished leather products,
-Nylon Fibre and Yarn,
-Plastic builder wares,
-Cut and polished synthetic stones, including cut and polished cubic zirconia,
Items To Become Cheaper
-Gold and gold,
-Silver and silver
-Other precious metals like platinum and palladium,
-Medical devices imported by international organisation and diplomatic missions.