Budget 2023: Union Finance Minister Nirmala Sitharaman in her Budget speech on Wednesday (February 1) proposed an increase in Basic Customs Duty (BCD) on several items to promote exports, boost domestic manufacturing, enhance domestic value addition, encourage green energy and mobility.
Imported cars, including electric vehicles, and those assembled in India with imported parts will become costlier with increased customs duty .
Here's what all gets 'COSTLY' | Read details:
- Customs duty on vehicles in completely built units (CBUs) costing less than USD 40,000 or with engine capacity less than 3,000 cc for petrol-run vehicles and less than 2,500 cc for diesel-run vehicles has been raised from 60 per cent to 70 per cent, as per the Budget document.
- Customs duty on electrically operated vehicles in CBU form, other than with cost, insurance and freight (CIF) value of more than USD 40,000, has also been raised to 70 per cent from 60 per cent.
- BCD on import of bicycles is also being increased from 30 per cent to 35 per cent. BCD for toys and its parts is also hiked from 60 per cent to 70 per cent.
- The BCD is being increased on styrene, vinyl chloride monomer, toys and parts of toys (other than parts of electronic toys), bicycles, automobiles in SKD and CBU form, silver bar, silver dore and naphtha
- The government has also decided to increase Agriculture Infrastructure and Development Cess (AIDC) on silver bar from the existing 2.5 per cent to 5 per cent and 2.5 per cent to 4.35 per cent on silver dore.
Here's what all gets 'CHEAPER':
- The government has provided customs duty exemption to import of specified capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles as available for the manufacture of lithium-ion cells for batteries used in mobile handsets
- To further provide impetus to green mobility, customs duty exemption is being extended to import of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles
- In order to deepen domestic value addition in the manufacture of mobile phones, the government has proposed exempting BCD on the camera lens for the camera module, and input/sub-parts for lens of the camera module of mobile phone is being reduced from 2.5 per cent
- It has also proposed to reduce BCD on parts for the manufacture of open cells of TV panels from 5 per cent to 2.5 per cent
- "Similarly, to promote value addition in the manufacture of televisions, I propose to reduce the basic customs duty on parts of open cells of TV panels to 2.5 per cent," said Nirmala Sitharaman.
- Moreover, to encourage the manufacturing of electric kitchen chimneys, the basic customs duty on electric kitchen chimney is proposed to increase from the existing 7.5 per cent to 15 per cent.
- Besides, BCD on denatured ethyl alcohol, used in the chemical industry, has been proposed to be exempt from the present 5 per cent.
- "This will also support the Ethanol Blending Programme and facilitate our endeavour for the energy transition. BCD is also being reduced on acid-grade fluorspar from 5 per cent to 2.5 per cent to make the domestic fluorochemicals industry competitive.
- Further, BCD on crude glycerin for use in the manufacture of epicholorhydrin is proposed to be reduced from 7.5 per cent to 2.5 per cent
The government has also increased National Calamity Contingent Duty (NCCD) on specified cigarettes, which were last revised three years ago.
"This is proposed to be revised upwards by about 16 per cent," she said.
To encourage marine product exports and help farmers from coastal states, it has been proposed to reduce duty on certain ingredients/inputs such as fish meal, krill meal, fish lipid oil, Algal Prime- used in the manufacture of aquatic feed.
It has also exempted 30 per cent BCD on import of warm blood horse by sports person of outstanding eminence for training purpose.
These changes will be effective from February 2, 2023, said a notification.
(With agencies inputs)
ALSO READ: 'Union Budget 2023 is a new engine of growth for nation'- Railways Minister Ashwini Vaishnaw | WATCH
ALSO READ: Budget 2023: P Chidambaram does not know definition of 'inclusive', says Smriti Irani
