Finance Minister Nirmala Sitharaman has announced some key matters regarding income tax slabs, hikes in capital expenditure, green push initiatives, and changes in specific duties and taxes on essential items that will impact people’s daily lives.
The changes in basic customs taxes and duty charges are resulting in making some items cheaper and some items costlier. This year’s budget has increased cigarette tax charges by 16%, while the government plans to reduce the customs duty on shrimp feed to encourage exports.
Here is a look at items that are getting cheaper and costlier:
WHAT GETS CHEAPER
– Customs duty on parts of open cells of TV panels cut to 2.5 per cent
– Govt proposes to reduce customs duty on the import of certain inputs for mobile phone manufacturing
– Govt to reduce basic customs duty on seeds used in manufacturing of lab-grown diamonds
– Govt to reduce customs duty on shrimp feed to promote exports
WHAT GETS COSTLIER
– Taxes on cigarettes hiked by 16 per cent
– Basic import duty on compounded rubber increased to 25 per cent from 10 per cent
– Basic customs duty hiked on articles made from gold bars
– Customs duty on kitchen electric chimney increased to 15 per cent from 7.5 per cent
Electric kitchen chimneys will become more expensive, while heat coils will become less expensive. To support ethanol blending and energy transitions, denatured ethyl alcohol will become more affordable. Furthermore, the Indian Union Budget 2023 facilitates domestic fluro-chemical industries.
Additionally, for the benefit of India’s diamond industry, diamond seeds used in the production of lab-grown diamonds will soon become more affordable. The Indian finance minister stated that the lab-grown diamond business had “huge promise for the nation” in her Union Budget 2023 speech.
Also read No income tax will be levied on total income below Rs 7 lakhs: Budget 2023