Here’s a list of what will be cheaper and what will be dearer as the budget proposals kick-in.
After the BJP-led NDA government returned to power with a thumping victory in the 2019 Lok Sabha polls, Finance Minister Nirmala Sitharaman today presented the maiden budget of Modi 2.0 announcing easing of FDI norms in single-brand retail and incentives to buy electric vehicles.
After promising tax cuts and doles in the interim Budget, the BJP-led dispensation had raised expectations for their first full-fledged Budget after returning to power for a second time. Here’s a list of items that are expected to get cheaper and dearer as Sitharaman’s proposals kick in.
Made in India electronic items: Electronic items made in India are set to become cheaper as the Finance Minister announced to withdraw customs duty on these items.
Electric Vehicles: To further incentivise e-mobility, customs duty is being exempted on certain parts of electric vehicles. The Finance Minister announced an additional income tax deduction of up to Rs 1.5 lakh on the loan taken to purchase an electric vehicle. The net benefit will be of the order of Rs 2.5 lakh as India aims to become a global hub of manufacturing electric vehicles. The GST rate on electric vehicles lowered from 12% to 5%.
Apple products: To get cheaper as FM proposes to ease FDI norms in single-brand retail.
Investment-linked tax benefit on manufacturing of products like lithium batteries and solar chargers.
Petrol and Diesel: Proposal to increase Special Additional Excise duty and Road and Infrastructure Cess each by one rupee a liter.
Gold: The Government proposed to increase customs duty on gold and other precious metals from 10% to 12.5%.
Tobacco products: Proposal to impose nominal basic excise duty on tobacco products.
Imported books: To encourage domestic publishing and printing, 5% customs duty is being imposed on imported books.
Stainless steel products: It was proposed that duty be hiked from 5% to 7.5% on such items.
Electronic goods ( Charger/ power adapter of CCTV camera/CCTV camera and IP camera): Such electronic goods are set to get costlier by at least 5%.
Split AC: Indoor and outdoor units of Split Air Conditioning units are set to get costlier by 10%.
Automobile and automobile parts: Imported automobile and auto parts to get costlier to make way for Make in India.
Raw materials for manufacture of soap
Ceramic tiles and wall tiles
Set top box
Import of defence equipment, not manufactured in India.