Union Budget 2024: What's cheaper and what's costlier?
What's the story
Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget for 2024-25, unveiling policies that will impact the prices of various goods for the general public. Sitharaman stated that the government aims to further simplify and rationalize the Goods and Services Tax structure. Notably, in the Interim Budget presented on February 1, no significant changes were announced by Sitharaman.
Duty increase
Customs duty hike on telecom equipment, plastic products
The government proposed a hike in customs duty on specific telecom equipment from 10% to 15%, making these items more expensive. Additionally, plastic products are set to become costlier due to a proposed increase in customs duty. This decision was made considering the harmful environmental impact of plastic products, indicating a move toward more sustainable practices.
Duty reduction
Reduction in basic customs duty benefits several sectors
The budget also proposed reductions in basic customs duty (BCD) for several items, making them more affordable. Three cancer medicines have been exempted from BCD, potentially easing the financial burden on patients. Mobile phones and mobile accessories are also set to see a price drop due to a duty cut to 15%. Indian Cellular and Electronics Association (ICEA) chairman Pankaj Mohindroo lauded this move, stating, "The mobile and electronics industry is elated with the announcements."
Duty exemptions
Exemptions, reductions in customs duties
The budget proposed exemptions from customs duties for 25 critical minerals, with two of these minerals seeing a reduction in BCD. Additionally, ferro nickel and blister copper have been proposed for exemption from BCD. The FM also suggested expanding the list of capital goods exempted from duties used in manufacturing solar panels, a move expected to boost the production of these eco-friendly energy sources.
I-T filing
New tax slabs announced in Union Budget 2024
Meanwhile, for those opting for the new tax regime, the standard deduction for salaried employees will be increased from ₹ 50,000 to ₹ 75,000, said Sitharaman. The FM also announced revisions to the tax slabs under the new regime. The government has also proposed raising capital gains exemption limit on certain financial assets to ₹ 1.25 lakh per year for the middle and upper middle class.