Union Budget 2024: What’s cheaper and what’s costlier?
The reduction in duties on gold and silver by 6 percent is expected to significantly boost retail demand for these precious metals. This move aims to make gold and silver more affordable for consumers, stimulating sales and supporting the jewelry industry. Lowering the duties will likely encourage more purchases during festive seasons and weddings, where gold and silver play a crucial role. Additionally, this reduction could help curb the illegal import of these metals by narrowing the price gap between domestic and international markets, thus benefiting both consumers and the overall economy.
New Delhi: In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced significant reductions in customs duties on cancer drugs and mobile phones, among other items, aimed at making them more affordable and boosting retail demand.
Key cancer drugs, including Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, will now be exempt from customs duties. This exemption is expected to significantly reduce the cost of these life-saving medications, making them more accessible to patients and easing the financial burden on families dealing with cancer.
This move is part of a broader strategy to improve healthcare affordability and access across the country.
In addition to healthcare, the Finance Minister announced a reduction in the basic customs duty on mobile phones, chargers, and other mobile parts to 15 percent. This reduction is expected to lower the prices of mobile phones and accessories, making them more affordable for consumers. The move is likely to stimulate demand in the mobile phone market, benefiting both manufacturers and consumers.
“The reduction in customs duties on gold and silver by 6 percent will significantly give a fillip to the retail demand,” Sitharaman added. Lower duties on gold and silver are expected to boost sales, especially during the festive season and weddings, where these precious metals are in high demand. The reduction is also anticipated to reduce the incentive for illegal imports by narrowing the price gap between domestic and international markets.
Other products set to become cheaper due to the budget announcements include leather goods and seafood. The reduction in customs duties on platinum by 6.5 percent and a 5 percent cut on seafood, including shrimps and fish feed, are expected to benefit consumers and stimulate demand in these sectors.
For the salaried class, Sitharaman announced several tax sops, providing relief to over four crore salaried individuals. Under the new tax regime, the standard deduction limit has been increased from ₹50,000 to ₹75,000. These measures aim to reduce the tax burden on salaried individuals and pensioners, increasing their disposable income and providing financial relief.
In detail, the reduction in duties on gold and silver by 6 percent is a strategic move to boost retail demand. Gold and silver are integral to Indian culture and are often purchased during festivals, weddings, and other significant occasions. By reducing the duties, the government aims to make these metals more affordable, encouraging consumers to buy more. This move is expected to have a positive impact on the jewelry industry, boosting sales and supporting related sectors.
Similarly, the reduction in customs duties on mobile phones, chargers, and other mobile parts is expected to lower the prices of these items, making them more accessible to a broader segment of the population. Mobile phones have become an essential part of daily life, and making them more affordable aligns with the government’s vision of a digitally empowered society. Lower prices are likely to boost sales, stimulate demand, and support the growth of the mobile phone industry.
The exemption of customs duties on cancer drugs Trastuzumab Deruxtecan, Osimertinib, and Durvalumab is a significant step towards making cancer treatment more affordable. These drugs are crucial in the treatment of various types of cancer, and their high costs have been a barrier for many patients. By exempting these drugs from customs duties, the government aims to reduce their prices, making them more accessible to patients and easing the financial burden on their families.
The proposed reduction in customs duties on platinum by 6.5 percent and a 5 percent cut on seafood, including shrimps and fish feed, are expected to benefit consumers and stimulate demand in these sectors. Lower prices for platinum are likely to boost its demand in the jewelry and industrial sectors. Similarly, the reduction in duties on seafood will benefit consumers by lowering prices and encouraging higher consumption, supporting the growth of the seafood industry.
For the salaried class, the increase in the standard deduction limit from ₹50,000 to ₹75,000 under the new tax regime provides significant tax relief. This move is expected to reduce the tax burden on salaried individuals, increasing their disposable income and providing financial relief. The enhanced deduction on family pension from ₹15,000 to ₹25,000 will benefit pensioners, providing them with additional financial support.
In conclusion, the Union Budget 2024, with its focus on reducing customs duties and providing tax relief, aims to make essential items more affordable and boost retail demand. The exemptions and reductions in duties on cancer drugs, mobile phones, gold, silver, platinum, and seafood are strategic moves to stimulate demand and support economic growth. The tax sops for the salaried class and pensioners further underscore the government’s commitment to providing financial relief and enhancing the overall well-being of the population. These measures are expected to have a positive impact on the economy, supporting growth and improving the quality of life for citizens.