Budget 2024: Sitharaman announces major reduction in basic customs duty
Finance Minister Nirmala Sitharaman has announced a large cut in customs duties on cancer medications and mobile phones, which will significantly lower their prices in the retail market. "The government will exempt 3 more cancer treatment drugs from Customs duty. I will also reduce basic customs duty on mobile phones, chargers and other mobile parts," Sitharaman said.
3 fold increase in domestic production
Regarding mobile phones, Sitharaman said, "Over the last six years, the Indian mobile industry has matured in the interest of consumers. I now propose to reduce the BCD on mobile phone, mobile PCBA and mobile charger to 15%." She added that the sector has seen three fold increase in domestic production and almost 100 fold jump in exports.
Imported gold, silver, leather good to get cheaper
Sitharaman further said that imported gold, silver, leather goods, fish feed, and seafood will get cheaper. Customs duties on gold and silver will also be decreased to 6%, while those on platinum will be slashed to 6.5%. On the contrary, the government plans to raise the rate on ammonium nitrate by 10% and on non-biodegradable plastics by 25%. Plastic items will also get costlier.
Which items will get costlier
Additionally, the basic customs duty on certain telecom equipment will increase from 10% to 15%. Sitharaman also suggested increasing the list of exempted capital goods used in the production of solar cells and panels. The FM added that e-commerce export hubs will be established in PPP (public-private partnership) mode to allow MSMEs to sell their items.
