Union Finance Minister Nirmala Sitharaman proposed changes in the customs duty rates of various commodities while presenting the Union Budget 2023. The change in customs duty rates will directly affect the prices of the underlying commodities.
National Calamity Contingent Duty (NCCD) on specified cigarettes is proposed to be revised up to 16 percent. The Finance Minister also proposed customs duty exemptions on the import of capital goods and machinery used for the production of lithium-ion batteries. The customs duty on silver will be increased to align it with the duty on gold and platinum.
What has become costlier?
1) Kitchen electric chimney: Customs duty on kitchen electric chimneys has been increased to 15 percent from 7.5 percent.
2) Cigarettes: A 16 percent increase in the calamity cess has been imposed on cigarettes, which will lead to an increase in prices.
3) Compounded rubber: Basic import duty on compounded rubber has been increased to 25 percent from 10 percent.
4) Articles made from gold: Basic customs duty has been hiked on articles made from gold bars.
5) Silver Jewellery: Customs duty on silver has been increased to bring it to par with gold and platinum.
What has become cheaper?
1) Television panels: Customs duty on parts of open cells of TV panels has been cut to 2.5 percent.
2) Smartphone components: Customs duty has been lowered on the import of certain inputs for mobile phone manufacturing.
3) Camera lenses: Customs duty for camera lenses has been proposed to be reduced to 2.5 percent.
4) Shrimp feed: The government has proposed to reduce customs duty on shrimp feed to promote exports.
5) Lab-grown diamonds: The centre has proposed a reduction in basic customs duty on the seeds used in manufacturing lab-grown diamonds.
6) Denatured ethyl alcohol: Basic customs duty has been exempted on denatured ethyl alcohol. Some of the common uses of denatured ethanol include paint removal, pest control, disinfectant, and window cleaning.
7) Acid-grade fluorspar: Basic customs duty on acid-grade fluorspar has been reduced from 5 percent to 2.5 percent.
8) Crude Glycerin: Basic customs duty on Crude Glycerin has been reduced from 7.5 percent to 2.5 percent.
