Union Budget 2024 introduced several changes to the customs duty structure which will lead to significant changes in prices of commodities
Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in the Parliament today in which she introduced several changes to customs duty. The changes will result in significant difference in prices of several commodities which can affect commoners.
During her budget speech, Sitharaman said that the changes were introduced to streamline taxation and promote domestic value addition. She said, "My proposals for customs duties intend to support domestic manufacturing, deepen local value addition, promote export competitiveness, and simplify taxation, while keeping the interest of the general public and consumers surmount."
The finance minister has also said the customs duty structure will be reviewed again in the next six months. So as a result of the changes introduced in the current budget, commoners will see changes in prices of several products.
What Gets Cheaper and Costlier
As per the announcements, cancer drugs (Trastuzumab Deruxtecan, Osimertinib and Durvalumab), medical x-ray machines , mobile phones, chargers, equipment using solar cells and panels, footwear, textiles, gold and silver, are expected to get cheaper.
The list of things that will get costlier include Ammonium nitrate, PVC flex banners, and imported telecom equipment. Experts foresee a significant impact of the changes. Aditya Jhaver, Director at CRISIL Ratings, said, “The reduction in basic customs duty on gold to 6 per cent from 10 per cent is expected to provide a fillip to gold jewellery sales, which have been tepid in the recent past because of high prices. This will drive up volumes for domestic gold jewellery retailers including during the festive and wedding seasons.”
Talking about the changes on medical equipment, Sanjeev Singh, Medical Director, Amrita Hospital, Faridabad, said that, "The exemption of customs duties on three cancer treatment medicines is a significant step towards making life-saving treatments more affordable for patients."
With the next budget is less than six months away and the government planning to rethink customs duty structure, more changes could be on the horizon.