Union Budget 2024: What will be cheaper and what will be costlier?

Union Budget 2024: Union Finance Minister Nirmala Sitharaman presented her seventh consecutive Union Budget on Tuesday. While presenting the Budget for 2024-25, she announced substantial reductions in customs duties on various items, including gold, silver, and platinum. The Finance Minister emphasised the government's efforts to streamline customs duties. "In 2022-23, we reduced the number of customs duty rates. I propose to further rationalize them after a review over the next six months," Sitharaman stated.

Changes in the new tax regime

Sitharaman also mentioned the government's commitment to simplifying and rationalizing the GST tax structure to make it more efficient. For those choosing the new tax regime, Sitharaman announced an increase in the standard deduction for salaried employees from Rs 50,000 to Rs 75,000.

Moreover, the government proposed increasing the capital gains exemption limit on certain financial assets to Rs 1.25 lakh per year, benefiting the middle and upper-middle classes.

Items that have become cheaper

• Mobiles, Chargers, and Accessories: Duty reduced to 15%.
• Precious Metals: Customs duty on gold and silver cut to 6%, and on platinum to 6.4%.
• Cancer Treatment Medicines: Three specific medicines are exempted from basic customs duty.
• Ferro Nickel and Blister Copper: Basic customs duty removed.
• Solar Panel Manufacturing: Expanded list of exempted capital goods.
• Critical Minerals: Fully exempt custom duties on 25 essential minerals.
• Shrimp and Fish Feed: Customs duty reduced to 5%.
• Leather Goods: Reduced customs duty.
• Medical Equipment: X-ray machines for medical, surgical, dental, or veterinary use.

Items that have become costlier

• Telecom Equipment: Basic customs duty increased to 15% from 10%.
• Plastic Products: Customs duty increased.
• Ammonium Nitrate: Duty raised from 7.5% to 10%.
• Garden Umbrellas: Increased customs duty.
• Laboratory Chemicals: Higher customs duty imposed.