Union Finance Minister Nirmala Sitharaman is presenting the last full-fledged budget of the second term of India’s Prime Minister Narendra Modi. The upcoming budget will be in the spirit of the previous one, as she had hinted earlier. There are some key changes in the custom duty regime that are proposed by our Union Finance Minister, Nirmala Sitharaman. Here is an update on the custom duties as per the Union Budget 2023.
Union Budget 2023: Changes In Custom Duty Regime
In an effort to reduce inflation, numerous changes, such as exclusions and reductions, were put up at the Union Budget 2023. Customs duty changes, usually referred to as tariff changes, can impact the economy in a number of ways.
In today’s budget, the Finance Minister announced a hike in the Natural Calamity Contingent Duty on cigarettes, or taxes on cigarettes, by 16%. For the past two years, taxation on cigarettes has been kept unchanged after the Natural Calamity Contingent Duty on cigarettes was hiked depending upon the stick size. Since the Union Budget for the fiscal year 2020–21, the NCCD on cigarettes has not increased.
More Updates
1. The elimination of customs duties on the import of machinery and capital goods needed for lithium-ion batteries is proposed.
2. The government proposes raising the customs duty on silver to match the duty on gold and platinum.
3. Compound rubber now carries a basic import tariff of 25% instead of 10%.
4. Basic customs duties on items manufactured from gold bars have increased.
5. Electric kitchen chimneys now have a 15% customs duty instead of a 7.5% one.
6. Customs fees on some open-cell TV panel components have been reduced to 2.5%.
7. The government proposed lowering the customs fees for several imports used in the production of mobile phones.
8. The custom duty rates on goods other than agriculture and textiles are proposed to be reduced from 21% to 13%.
9. Basic custom duty on heat coils is proposed to be reduced from 20% to 15%.
10. Customs duties on shrimp feed will be reduced to encourage exports.
11. A reduction in the basic custom duty on seeds used in manufacturing lab-grown diamonds is proposed.
12. To promote manufacture of electronics, there will be a relief on custom duty for camera lens.
13. Custom duty on steel, copper and ferrous product will be concessional.
Also Read: Union Budget 2023: All Tourism Related Updates You Need To Know
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