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Union Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget for the eighth consecutive time in Parliament, making history. She has surpassed the record of former Prime Minister and Finance Minister Morarji Desai last year.
This year’s Union Budget has maintained the BJP-led Modi government’s focus on promoting economic growth while ensuring equity. The government has also prioritized improving the quality of life in rural areas to ensure equitable and inclusive development.
Due to changes in customs duties, a few things have gotten cheaper while the prices of some items have gone up. Check some revisions in customs duty:
1. 36 life-saving medicines have been exempted from Basic Customs Duty.
2. The government has proposed a full exemption from Basic Customs Duty on lead, zinc, and 12 other minerals.
3. Raw materials for shipbuilding are now exempt from Basic Customs Duty for an additional 10 years.
4. Last year’s budget had already resulted in price reductions for mobile phones, gold, silver, and copper.
5. Three cancer treatment drugs were also removed from the Basic Customs Duty list.
One of the key proposals in this year's budget is a time limit for provisional assessment, set at two years. Last year's budget had already introduced several measures to reduce the prices of mobile phones, gold, silver, and copper, alongside exemptions for three cancer treatment medicines from Basic Customs Duty.
Items That Got Costlier
While many essential items will see a reduction or exemption in customs duties, some goods are set to become costlier, particularly in the tech and manufacturing sectors.
Increase in Customs Duty on Interactive Flat Panel Displays
The government has proposed increasing the Basic Customs Duty on interactive flat-panel displays from 10% to 20%. This measure aims to address the inverted duty structure and level the playing field for domestic manufacturers of such products.
The revision of Basic Customs Duty (BCD) on key electronics items will strengthen the 'Make in India' initiative and help meet Prime Minister Narendra Modi's ambitious $500 billion electronics manufacturing target, the industry said on Saturday.
While announcing reductions in import duties on key electronics components in the Union Budget, Finance Minister Nirmala Sitharaman said the exemption is part of a broader initiative to support the industry by reducing costs and encouraging domestic production.
The announcement aims to strengthen India’s electronics manufacturing sector with mobile phones, smart LED TVs, and other devices more affordable while enhancing the country’s role in global supply chains.
One of the major changes includes a reduction in the basic customs duty (BCD) on mobile phones, mobile phone chargers, and printed circuit board assemblies (PCBAs).
The duty has been lowered from 20 per cent to 15 per cent, which is expected to benefit domestic manufacturers and reduce the cost of mobile phones for consumers.
Parts such as PCBAs, camera modules, USB cables, and fingerprint readers, which were previously taxed at 2.5 per cent, will now be duty-free. This decision is expected to lower production costs and make smartphones more affordable for Indian consumers.
Television manufacturers will also see relief, as the customs duty on open cells used in LED and LCD TV panels has been fully exempted. This change is expected to reduce production costs and make smart TVs more budget-friendly.
