NEW DELHI, JULY 5: In her maiden budget, which was the also the first one of the Narendra Modi 2.0 government, finance minister Nirmala Sitharaman announced a change in custom duty of several products which will lead to a change in their market prices.
Here’s a list of what is going to be cheaper and dearer.
Petrol and diesel: The price of petrol and diesel will soon go up by Re 1 a litre as the finance ministry has decided to impose a special additional excise duty on the two fuels in the Union Budget 2019.
“I propose to increase Special Additional Excise duty and Road and Infrastructure Cess each by one rupee a litre on petrol and diesel,” Nirmala Sitharaman said in her budget speech. Stating that crude prices have softened from their highs, she said it gives me a room to review excise duty and cess on petrol and diesel.
Gold and other precious metals: Nirmala Sitharaman said she has also proposed to increase custom duty on gold and other precious metals from 10% to 12.5%.
Certain synthetic rubber
“In order to provide domestic industry a level playing field, basic customs duty is being increased on items such as cashew kernels, PVC, Vinyl flooring, tiles, metal fittings, mountings for furniture, auto parts, certain kinds of synthetic rubbers, marble slabs, optical fibre cable, CCTV camera, IP camera, digital and network video recorders etc,” Sitharaman said.
Specified electronic goods
To further promote domestic manufacturing, the budget has reduced customs duty on certain raw materials and capital goods.
These include certain inputs of CRGO sheets, amorphous alloy ribbon, ethylene di-chloride, propylene oxide, cobalt matte, naphtha, wool fibres, inputs for manufacture of artificial kidney and disposable sterilised dialyser, and fuels for nuclear power plants.
To further incentivise e-mobility, customs duty is being exempted on certain parts of electric vehicles. Customs duty is also being exempted on capital goods required for manufacture of specified electronic goods.