Union Budget 2024:Â Finance Minister Nirmala Sitharaman has announced to make mobile phones and chargers cheaper in the budget. In the budget today, the Finance Minister has made big relief announcements regarding the items used by the common people.Â
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Gold, silver and platinum will become cheaper
Custom duty on gold and silver has been reduced to 6%, which will make them cheaper. Custom duty on platinum has also been reduced, after which it is also going to become cheaper. Finance Minister Nirmala Sitharaman has proposed to reduce the custom duty on gold and silver to 6% in the budget speech. Apart from that, she also informed about reducing the custom duty on platinum to 6.4%. After the implementation of this decision of the government, the prices of gold, silver and platinum will decrease.
A gift from the cheapness of mobile phone chargers
Finance Minister Nirmala Sitharaman announced that the basic custom duty on mobile phones and chargers has been reduced by 15 percent. Due to this, there will be a reduction in the price of mobile phones.
EV will get a boost due to cheaper lithium batteries
Finance Minister Nirmala Sitharaman also talked about solar panels and lithium batteries becoming cheaper, which will reduce the prices of phone and vehicle batteries. Apart from this, the Tax Deducted at Source (TDS) rate for e-commerce companies has been reduced from 1 percent to 0.1 percent. It has been made almost zero.
Finance Minister gave big relief on cancer medicinesÂ
The Finance Minister announced that three medicines for cancer treatment will be exempted from basic customs duty. Basic customs duty on X-ray tubes and flat panel detectors used in X-ray machines will also be changed. After the announcement comes into effect, their prices will also come down. Apart from this, the government has removed the basic customs duty on ferronickel and blister copper.
After the budget announcement, these products will become expensive
The Finance Minister has announced to increase the customs duty on ammonium nitrate from 10 percent to 25 percent.
The basic customs duty on specified telecom equipment has also been increased from 10 per cent to 15 per cent.
This became cheaper in the budget
·Mobiles & Mobile Chargers
·Solar Panels
·Leather Products
·Jewellery (Gold, Silver, Diamond, Platinum)
·Steel & Iron
·Electronics
·Cruise Travel
·Sea Food
·Footwear
·Cancer Drugs
This became expensive in the budget
· Specified telecommunications equipment
· PVC plastic
Products getting cheaper and costlier due to increase or decrease in indirect tax in the budget
To understand the products getting cheaper and costlier, first we have to understand the taxation system. Taxation is divided into direct tax and indirect tax:
1. Direct Tax:Â It is levied on the income or profits of people. Taxes like income tax, personal property tax come under it. The burden of direct tax is borne by the person on whom the tax is imposed and it cannot be passed on to anyone else. The Central Board of Direct Taxes (CBDT) governs it.
2. Indirect Tax:Â It is levied on goods and services. Taxes like custom duty, excise duty, GST, VAT, service tax come under it. Indirect tax can be shifted from one person to another.
Like the wholesaler passes it to the retailers, who pass it to the customers. That is, it ultimately affects the customers. This tax is governed by the Central Board of Indirect Taxes and Customs (CBIC).
90% of the products are under the purview of GST, the decisions related to it are taken by the GST Council.
After 2017, the price of about 90% of the products depends on GST. All the decisions related to GST are taken by the GST Council. Hence, there is no change in the prices of these products in the budget.
