New Delhi5 days ago
- Copy link
After the government’s budget announcements, some things will be cheaper, some will increase the prices. But there has been no change in custom duty on gold and silver. Look below, list of cheap and cheap goods …
Other items that will be cheap: Imported cars with an engine capacity of more than $ 40,000 or an engine capacity of more than 3,000 cc and imported motorcycles such as a fully manufactured (CBU) unit whose engine capacity does not exceed 1600 cc.
Other items that will be expensive: Smart meter solar cells, imported shoes, imported candles, imported boats and other ships, PVC Flex Films, PVC Flex Sheets, PVC Flex Banner, Cloth made
Removing custom duty from medicines will reduce the cost of critical treatment
- Removing custom duty from 36 life saving drugs will reduce the cost of critical treatment. This will benefit families who are financially weak and are not able to fight cancer and other serious diseases.
- The electronics manufacturing sector will strengthen the electronics manufacturing sector due to the reduction of import duty of open cell and other components. LED TVs and other equipment will become affordable and India’s position will be strong in the global supply chain.
- To reduce the battery production cost, the government has reduced custom duty from 35 additional goods. This will make electric vehicles cheap and will help in completing 30% of EV penetration goals in India’s automobile cells by 2030.
- The government has removed custom duty on weight blue leather because it will make imports easier for domestic processing. Wet blue leather is used to make products such as shoes, bags.
- To continue growth in the Marine industry, the government has extended zero custom duty on the Raw Material used in Ship Manufacturing for the next 10 years. Components and parts required for ship manufacturing are also zero duty.
What cheap and expensive in the last one year …
In 3 questions, know how the prices of goods decrease in the budget
Question 1: How are the products cheap in the budget? answer: No product in the budget is directly cheap-cheaper. Things are cheaper and cheaper due to the reduction of indirect tax like custom duty, excise duty. The increase in duty and decrease affects the prices of things.
Understand this with an example. Suppose, the government announced in the budget that it is cutting the import duty on gold by 10%. The effect of this will be that gold from abroad will be 10% cheaper. That is, gold jewelery, biscuits, coins prices will be reduced.
Question 2: What is indirect tax? Answer: Taxation is divided into direct tax and indirect tax:
i. Direct Tax: It is imposed on people’s income or profits. Taxes like Income Tax, Personal Property Tax come in it. The burden of direct tax bears only the person who has been taxed and cannot be passed to anyone else. The Central Board of Direct Taxes (CBDT) governs it.
ii. Indirect tax: It is imposed on goods and services. Taxes like custom duty, excise duty, GST, VAT, service tax come in it. Indirect tax can be shifted from one person to another.
For example, wholesaler passes it to retailers, who pass it to customers. That is, it affects customers in the end. This tax is governed by the Central Board of Indirect Taxes and Customs (CBIC).
Question 3: In the first budget itself, the prices of goods like TV, fridge, AC used to decrease, why does it not happen now? answer: Actually, the government implemented GST across the country on 1 July 2017. About 90% of the products come under the purview of GST and take all GST councils related to GST. Therefore, there is no change in the prices of these products in the budget.