New Delhi February 2 : Finance Minister Nirmala Sitharaman on February 1 presented the Union Budget 2021. The unique paperless budget, the first in history will impact the daily lives of Indians as it witnesses several reforms in major segments, from health to infrastructure.
Gadgets to become expensive
Due to hike in customs duty on the imported parts, a large number of commonly used items -refrigerators, air conditioners, LED lights and mobile phones, will become more expensive.
Customs duty on the compressors for refrigerators and air conditioners has been hiked to 15 per cent from 12.5 per cent, while the same on LED lamps, parts and spares such as printed circuit boards has also been increased from 5 per cent to 10 per cent.
Gold, silver will become cheaper
However, here’s good news for people who are planning to invest in jewellery as gold and silver will become cheaper as a result of rationalisation in the customs duty on imports of these precious metals
Imported gold and silver will become cheaper as a result of rationalisation in customs duty these precious metals.
Customs duty on gold and silver has been reduced to 7.5 per cent from 12.5 per cent earlier. Customs duty on the gold bar has been reduced to 6.9 per cent from 11.85 per cent and silver bar to 6.1 per cent from 11 per cent earlier.
Customs duty on other precious metals like platinum and palladium has been reduced from 12.5 per cent to 10 per cent.
Custom duty on solar inverters
Likewise, customs duty on solar inverters has been hiked to 20 per cent from 5 per cent earlier, and solar lanterns will now attract customs duty of 15 per cent.
Raw silk
Sitharaman also announced increasing basic customs duty on raw silk to 15 per cent from 10 per cent earlier and on cotton to 5 per cent from nil earlier.
Auto
Imported automobile parts such as safety and toughened glasses, windscreen wipers, signalling equipment will attract higher customs duty of 15 per cent, up from 10 per cent thereby making the products expensive.
“At present, to encourage domestic production, we are raising duty on solar inverters from 5 per cent to 20 per cent, and on solar lanterns from 5 per cent to 15 per cent,” Sitharaman said in her budget 2021-22 speech.
Mobile, camera module, back covers
The finance minister has announced a hike in customs duty on mobile phone parts like PCBA, camera module, connectors, back cover, side keys and mobile phone charger components of 2.5 per cent from nil.
“Domestic electronic manufacturing has grown rapidly. We are now exporting items like mobiles and chargers. For greater domestic value addition, we are withdrawing a few exemptions on parts of chargers and sub-parts of mobiles. Further, some parts of mobiles will move from ‘nil’ rate to a moderate 2.5 per cent,” Sitharaman said.
Inputs or raw materials of Lithium-ion battery will now attract customs duty of 2.5 per cent from nil earlier and similarly, ink cartridges and ink spray nozzle would also attract 2.5 per cent customs duty nil previously.
Leather
Finished leather products will become expensive as they now attract basic customs duty of 10 per cent as against NIL earlier.
Imported fibre
On the other hand, customs duty on imported nylon fibre and yarn has been reduced to 5 per cent from 7.5 per cent.
Agriculture
The finance minister announced a levy of agriculture infrastructure and development cess of 2.5 per cent.
Plastic Builder wares
Basic customs duty on plastic builder wares has increased to 15 per cent from 10 per cent earlier and cut and polished synthetic stones, including cut and polished cubic zirconia will now attract basic customs duty of 15 per cent as against 7.5 per cent earlier.
The government also waived 5 per cent health cess on the medical devices imported by the international organisation and diplomatic missions, which is expected to result in bring down the cost.