Finance Minister Nirmala Sitharaman's Budget 2024 announced a slew of duty relaxations, making several items more affordable for consumers. The budget, presented on Tuesday, July 23, focused on fostering economic growth through tax reforms and import duty reductions.
Gold, Silver, and Platinum: Customs duties on gold and silver was reduced from 15% to 6%, and platinum duties have been cut to 6.5%. This move is expected to boost retail demand and curb smuggling, benefiting the gems and jewellery industry.
Mobile Phones: The basic customs duty on mobile phones, printed circuit board assemblies (PCBAs), and chargers has been reduced from 20% to 15%. This reduction aims to make smartphones more affordable and strengthen the ‘Made in India’ manufacturing sector.
Cancer Drugs: Three additional cancer treatment drugs are now exempt from customs duty, reducing costs for patients.
Seafood: The basic customs duty on certain brood stocks, shrimps, and fish feed has been lowered to 5%, benefiting seafood producers and exporters.
Solar Energy Parts: The government has proposed expanding the list of exempted capital goods for manufacturing solar cells and panels, boosting the renewable energy sector.
Footwear: Customs duties on manufacturing leather and footwear have been cut, supporting domestic production.
Critical Minerals: The finance minister announced a full exemption of customs duties on 25 critical minerals, including lithium, copper, cobalt, and rare earth elements, crucial for sectors like renewable energy and high-tech electronics. Basic customs duty on two of these minerals will also be reduced.
Ferronickel and Blister Copper: Basic customs duties on these materials will be removed, aiding the manufacturing sector.
What's likely to become costlier
Telecom Equipment: Import duties on motherboards (PCBs) for telecom gear will increase by 5%, aimed at boosting domestic manufacturing.
Ammonium Nitrate: Customs duty will be raised to 10%, impacting industries reliant on this chemical.
Non-Biodegradable Plastics: Customs duty on these plastics will also be increased to 10%, promoting environmentally friendly alternatives.
What else?
Capital Gains Exemption: The exemption limit on capital gains for certain financial assets will be raised to ₹1.25 lakh per year, benefiting the middle and upper-middle classes.
Angel Tax Abolishment: The government will abolish the angel tax for all classes of investors in startups, promoting a more conducive environment for innovation and entrepreneurship.
Securities Transaction Tax (STT): The STT on futures and options securities will see a hike of 0.02% and 0.1% respectively. Additionally, income from share buybacks will now be taxed in the hands of recipients.