Key Budget Proposal relating to Customs Duty

Summary

The budget for 2024 introduces several proposals that may impact both the common man and various industries. Key changes include reduced customs duties on gold, making it cheaper, and on mobile phones, which could lower prices. Other proposals focus on reducing duties on critical medicines, promoting domestic manufacturing, and supporting sectors like renewable energy and telecommunications. The overall aim is to boost economic growth, enhance competitiveness, and improve access to essential goods. Viewers are encouraged to share their thoughts and comments on how these changes might affect their businesses.

Takeaways

• 📊 The budget proposes several changes which may be of interest to the common man as well as various industries.
• 💰 A reduction in customs duty on gold and benefits from this course of action are expected to be completed, impacting everyone.
• 📉 The removal of the incentive on small gold could lead to a decrease in its price by 6000 to 7000 per 10 grams.
• 📱 The budget impacts the booming exports and production of mobile phones from India, proposing reduced duties on mobile, making it more competitive.
• 🔍 Indian manufacturing of mobile phones has become quite competitive and can compete with China, driven by other obligations in the WTO deal.
• 💊 The budget proposes changes in basic customs duty on certain medical equipment, providing relief to cancer patients.
• 🛡️ There are proposals to fully exempt customs duty on 25 critical minerals, which are essential for sectors like nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics.
• 🌞 Proposals have been made to expand the list of exempted capital goods for use in the manufacturing of solar cells and panels to support energy transition.
• 🐟 The budget proposes to reduce basic customs duty on certain marine products and inputs for shrimp and fish feed, impacting the export and textile sectors.
• 📉 There is a proposal to reduce basic customs duty on real down filling material from duck and goose, which could enhance domestic value addition in the country.
• 🚗 Rationalization of metals is proposed to enhance domestic value addition in gold and precious metal jewelry, impacting the cost of production.

Q & A

What are the proposed changes in customs duty on gold and silver in the budget?

The budget proposes to reduce customs duties on gold and silver to 6% and on platinum to 6.4%, along with other precious metals, to reduce the cost of production.

How does the budget address the issue of mobile phone manufacturing in India?

The budget proposes to remove the incentive for smuggling gold from the Middle East and also to make Indian mobile phone manufacturing more competitive by reducing customs duties on mobile phones, mobile chargers, and related parts.

What are the implications of the proposed reduction in customs duty on critical minerals?

The reduction in customs duty on critical minerals such as lithium, cobalt, and rare earth elements is aimed at supporting sectors like nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics.

What measures are proposed to enhance domestic value addition in gold and precious metal jewelry?

The budget proposes to simplify and rationalize the structure on raw hides skins and leather, and reduce customs duties on gold and silver to enhance domestic value addition in the country.

How does the budget plan to support the renewable energy sector?

The budget plans to extend the benefit of the reduced customs duty on solar energy to support the transition against climate change and to increase the list of exempted goods for the use in the manufacture of solar cells and panels.

What are the proposed changes for the marine products sector?

The budget proposes to reduce the basic customs duty on certain marine products like sardine, brackish water prawn, and fish feed to 5% to support the domestic manufacturing of shrimp and fish feed.

What incentives are being proposed for the leather and textile sectors?

The budget proposes to exempt customs duties on various inputs for the manufacture of shrimp and fish feed, and to reduce the basic customs duty on real down filling material from duck and goose to enhance the competitiveness of the leather and textile sectors.

How does the budget address the import of electronics and telecom equipment?

The budget proposes to remove the basic customs duty on oxygen-free copper for the manufacture of registers and to exempt certain telecom equipment to support existing and new capacities in the pipeline industry.

What are the proposed changes for the chemical and petrochemical sectors?

The budget proposes to increase the basic customs duty on ammonium nitrate rates from 7.5% to 10% to support the domestic manufacturing of chemicals and petrochemicals.

How does the budget impact the import of plastics and PVC flex banners?

The budget proposes to reduce the basic customs duty on plastics and PVC flex banners from 10% to 25% to promote the environment and health by curbing imports.

What measures are being taken to promote domestic manufacturing of communication equipment?

The budget proposes to increase the basic customs duty from 10% to 15% on specified telecom equipment to promote domestic manufacturing and both import and export of goods under warranty from three to five years.