Nirmala Sitharaman on Tuesday presented the first Budget of Modi Government 3.0 and it was literally youth-centric. In the Union Budget 2024-25, the government identified nine priorities- productivity and resilience in agriculture, employment and skilling, social justice, manufacturing & services, urban development, energy security, infrastructure, innovation R&D, and next-generational reforms. Sitharaman announced a slew of tax cuts in various sectors. Budget 2024-25 brought a big smile for states like Bihar & Andhra Pradesh. Interestingly, both the state's government i.e. JDU & TDP supported Modi's claim over the PM's post after BJP's poor performance in the Lok Sabha Elections 2024. Keeping the politics aside, there were multiple commodities whose prices are expected to decrease after tax cuts. Below is a list of commodities which got costlier & cheaper-
What got cheaper in Budget 2024?
- Mobile phones and chargers will get cheaper after a reduction of 15% customs duty by Nirmala Sitharaman during Budget 2024
- Customs duties on cancer medicines will be significantly reduced, leading to lower retail prices for these items.
- The cost of imported gold, silver, leather goods, and seafood is also expected to decrease. "The customs duty on gold and silver will be lowered to 6%, while the duty on platinum will be reduced to 6.5%" announced Sitharaman.
- 5 percent tax cut on seafood which includes shrimps and fish feed.
- The government would exempt customs duty on 25 critical minerals, leading to their price drop
What got expensive in Budget 2024?
- Centre plans to increase customs duties, raising the rate on ammonium nitrate by 10% and on non-biodegradable plastics by 25%.
- Furthermore, telecom products will become more expensive due to a rise in the basic customs duty from 10% to 15% on certain telecom equipment.
- Plastic products will also see a price increase following a hike in customs duty on these items.
It is pertinent to mention here that in the previous budget, FM SItharaman had reduced import taxes on several components, including camera lenses, to promote mobile phone manufacturing in India. Additionally, the tax rate on lithium-ion batteries, crucial for phones and electric vehicles, was cut to lower production costs.