Budget 2023: Cigarettes to jewellery, here are the items set to get costlier

Every year, at the end of January, citizens across the country eagerly wait for the probable measures that would be introduced in the Union Budget for the next financial year. While, hopes ride high in anticipation of greater benefits in terms of lower taxes and sops, every year prices of certain commonly used items go up due to increase of duties and taxes on them.

The recently tabled Union Budget for FY2023-24 is no exception. The FM has announced adjustments in duties and taxes on several items, which are likely impact their market prices from tomorrow (2 February). Here are some of the key items that are likely to cost more from the next financial year due to higher tax incidence announced by Finance Minister Nirmala Sitharaman today:

Cigarettes: For smokers, the cost of their poor habit is set to go up from 2 February as the FM has proposed a 16 per cent hike in the National Calamity Contingency Duty (NCCD) on cigarettes. While, leading companies like ITC, which owns top selling brands like Gold Flake, Classics and Flake and Silk Cut, and Godfrey Phillips (brand licence of Marlboro) haven’t revealed their plans on price hikes, analysts from  Nuvama Securities estimate a 2-3 per cent price hike on cigarettes.

Gems & Jewellery: Prices of a host of gems and jewelleries are set to go up as customs duty on several key items – from silver, gold and platinum to imitation jewelleries – have been introduced that are effective from tomorrow. Overall, duties on silver have been raised by 7.5 percentage points – from 7.5 per cent to 15 per cent. While on imitation jewellery the increase in central excise is in the tune of 50 per cent. Central excise on precious metals like gold and platinum have been raised by 25 per cent.

Imported Electric Vehicles: Electric vehicles imported in semi-knocked down form will attract higher central excise duty – to the tune of 35 per cent, up from 30 per cent now. While duty on complete finished EVs that will be imported from tomorrow will attract 70 per cent duty, compared to 60 per cent. Duty on imported bicycles has also been raised by 16.67 per cent.

Electric Kitchen Chimney: With doubling of excise duty on imported electric kettle chimney – from 7.5 per cent to 15 per cent, prices are set to go up.

Also Read: Union Budget 2023: Made-in-India smartphones, TVs to get cheaper