Union Budget 2024-25: Changes in Customs Duties Impacting Prices of Essential Commodities

Union Budget 2024-25: Changes in Customs Duties Impacting Prices of Essential Commodities

Finance Minister Nirmala Sitharaman’s Union Budget 2024-25 brings significant changes in customs duties, aiming to make several essential goods more affordable while increasing costs for others. Notable reductions include the customs duty on precious metals such as gold, silver, platinum, palladium, osmium, ruthenium, and iridium, now set at 6% for gold and silver, and 6.5% for platinum. This move is expected to lower prices of gold and silver bars, as well as platinum used in manufacturing noble metal solutions and medical equipment like orthopedic implants and X-ray machines. Import duties on crucial cancer drugs like Trastuzumab Deruxtecan, Osimertinib, and Durvalumab have been waived to enhance affordability in healthcare. Additionally, mobile devices and their components, including chargers and printed circuit boards, will see a reduced duty rate of 15%, aimed at benefiting consumers and boosting the mobile industry. However, certain goods will become more expensive due to increased customs duties, such as imported garden umbrellas, laboratory chemicals, and non-biodegradable plastics, now subject to a 10% duty. The budget also addresses environmental concerns by exempting customs duties on critical minerals like lithium carbonates and oxides, and reducing duties on others, promoting sustainable energy solutions. Moreover, the costlier imports include telecom equipment with a raised duty of 15%, aiming to bolster domestic production. The reforms are poised to impact various sectors from healthcare to renewable energy, aligning with the government’s economic priorities while catering to consumer needs.

Cheaper Items:
1. Precious Metals: Customs duties reduced to 6% on gold, silver, platinum, palladium, osmium, ruthenium, and iridium.
2. Cancer Drugs: Trastuzumab Deruxtecan, Osimertinib, Durvalumab exempted from customs duty.
3. Medical Equipment: Lower duties on orthopedic implants, X-ray machines, and related components like flat panel detectors.
4. Mobile Devices: Basic customs duty reduced to 15% for cellular mobile phones, chargers, and PCBAs.
5. Solar Energy Parts: Proposal to waive customs duties on parts used in solar cells and modules.
6. Seafood: Reduced duty to 5% on certain brood stocks, shrimps, and fish feed.

Costlier Items:
1. Telecom Equipment: Duty increased to 15% from 10% on specified telecom equipment.
2. Non-Biodegradable Plastics: Duty raised to 10% on non-biodegradable plastics.
3. Garden Umbrellas: Increased basic customs duty.
4. Laboratory Chemicals: Subject to higher customs duty.
5. Solar Glass: Higher duties for solar glass used in solar cell manufacturing.
6. Ammonium Nitrate: Customs duty raised to 10%.

Other Highlights
– Critical Minerals: Exemption from customs duties for 25 critical minerals; reduced duties on lithium carbonates and oxides.
– Environmental Focus: Measures to promote sustainable energy solutions and reduce environmental impact.
– Healthcare Affordability: Emphasis on making essential cancer drugs more accessible to patients.
– Economic Impact: Reforms expected to stimulate domestic production in sectors like telecommunications and healthcare.
– Budget Goals: Aligns with government priorities of promoting growth, sustainability, and consumer welfare.

These changes reflect the government’s strategic approach to economic management, aiming to balance consumer affordability with sectoral growth and environmental sustainability.

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