Cheaper and expensive items after budget 2023: The Union Budget 2023–24, presented by the Union Finance Minister, Nirmala Sitharaman, proposed a number of changes to the Customs Duty regime with the goal of promoting exports, boosting domestic manufacturing, and enhancing value addition. These changes are likely to raise the price of bicycles, toys, and certain classes of cars, including EVs, while making TVs and mobile phones less expensive.
During her budget speech, she was quoted as saying, “a simplified tax structure with fewer tax rates helps in reducing compliance burden and improving tax administration. I propose to reduce the number of Basic Customs Duty (BCD) rates on goods, other than textiles and agriculture, from 21 to 13.” Further, she added saying that there would be “minor changes in BCD, cesses and surcharges on some it.
The items that would become cheaper:
1. The lithium-ion batteries, which are used in mobile phones, audio gadgets, and power banks, will become cheaper.
2. The government has decreased the taxes on EVs and biogas in order to encourage the use of green energy.
3. Due to the slash in the customs duty on automobiles import, automobile vehicles will now become more cheap.
4. The camera lens, which is used in mobile phones and cameras, will also become affordable. Apart from this, the government has slashed taxes on electronic items and has reduced customs duty on the import of specific inputs for mobile phone manufacturing.
5. The government will also reduce the customs duty on shrimp feed to promote exports.
6. Apart from this, expect a reduction in basic customs duty on the manufacturing of lab-grown diamonds.
7. Lastly, the custom duty on parts of open cells of TV panels will also become cheap.
The items that would become expensive:
1. The first one has to be an increase in the taxes on cigarettes by a whopping 16%.
2. One can expect fully imported cars, including electric vehicles, to become more expensive.
3. Basic import duty on compounded rubber will be increased from 10% to 25%.
4. There will be a hike on items made from gold bars. In fact, imitation jewelry will also become costlier.
5. And lastly, custom duty on kitchen electric chimneys will be increased from 7.5% to 15%.