The Union Budget for 2024 was presented today before the parliament at 11 am by the Union Finance Minister, Nirmala Sitharaman. The budget contains a comprehensive road map for the coming year. The FM in her budget speech, expressed that she wishes to undertake a comprehensive review of the rate structure over the next six months to rationalize and simplify customs duty for ease of doing business and which would help to reduce disputes.
The Union FM, while presenting the budget, proposed to carry out a comprehensive review of the customs rates in our country within 6 months. The FM continued her speech by discussing the various changes proposed for customs duty. Significant reforms in customs duty have been brought to the medieval sector. With the aim of providing relief to cancer patients, 3 more medicines have been fully exempted from customs duty.
The duty of customs on medical equipment, such as changes in the basic customs duty BCD on x-ray tubes & flat panel detectors, has been reduced to provide better medical services to the public. The FM has announced the removal of customs duty on 25 critical and rare earth minerals such as cobalt, copper, lithium, etc.
Since solar energy is a critical aspect of climate protection and sustainable development , the customs duty levied on solar sets and panels has been significantly reduced. With another step aimed at protecting the environment, the FM aims to impose a BCD of 25% on PVC flex bannewrs, as they are hazardous for the environment and cannot be decomposed.
India saw a record on sea exports with more than 60,000 crore rupees, and thus customs duties have also been decreased on marine and selected fish products, which will provide a significant boost to the fisheries sector.The FM has proposed to reduce customs duty on fish feeds, which is helpful to entities carrying on aquarium activities, firms selling pet foods, etc.
To improve the competitiveness of imports in the textile and leather industries, the customs duties on leather and textile products will be reduced. To increase domestic value addition in gold and precious metal jewelry, the FM wishes the customs tariffs on gold and silver would be reduced to 6% and platinum to 6.4%.
In order to reduce the cost of production of the most important industrial raw materials, such as steel and copper, the BCD on ferro nickel and blister copper will be reduced. It is interesting to note that the BCD on ammonium nitrate has been reduced from 10% to 7.5%. And the basic customs duty (BCD), which applied to certain electronic devices, has been repealed.
By bringing several changes, reductions, and repeals of customs duty on various sectors and products, the Union budget aims to improve trade, business and aims to promote sustainable development.
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