On Monday, Finance Minister Nirmala Sitharaman presented the Union Budget 2021-22 where healthcare and infrastructure emerged as the top-most priority of the Narendra Modi-led government.
However, a new agricultural cess has been imposed on certain imported good and raised customs duty on several items to pull the economy out of the downfall. Although, due to the rationalisation in customs duty on imports of precious metals, the prices of gold and silver are set to become cheaper after the Union Budget 2021-22.
The government has reduced the import duty of semi, flat and long products of non-alloy, alloy and stainless steel to 7.5% from 12.5%. It will make jewellery and bullion cheaper. Steel bars and utensils, nylon clothes, copper items, insurance and electricity are all set to get cheaper as well.
Meanwhile, imported products like compressors for refrigerators and air conditioners (ACs), raw silk, spandex fibre, LED lamps, solar lanterns, mobile phones and power banks are going towards a price hike due to a proposed increase in customs duty.
The customs duty on raw silk has been raised from 10% to 15% while solar lanterns face a double hike, 7.5% to 15%. The finance minister has also announced the imposition of Agriculture Infrastructure and Development Cess (AIDC) of 100% on alcoholic beverages. However, according to experts, it will not affect the consumer price as basic customs duty for alcohol has been reduced from 150% to 50%.
Here’s an extensive list of all the things that will have a price hike after Union Budget 2021-22:
- Compressors for refrigerators and air conditioners
- LED lamps, parts and spares such as printed circuit board
- Raw silk and cotton,
- Solar inverters and lanterns
- Automobile parts such as safety and toughened glasses
- Windscreen wipers
- Signalling equipment
- Mobile phone parts like PCBA
- Camera module
- Back cover, side keys, Mobile phone charger components
- Inputs or raw materials of Lithium-ion battery
- Ink cartridges and ink spray nozzle
- Finished leather products
- Nylon Fibre and Yarn, Plastic builder wares
- Cut and polished synthetic stones, including cut and polished cubic zirconia
Things that will cost cheaper,
- Gold and gold bars
- Silver and silver bars
- Other precious metals like platinum and palladium
- Medical devices imported by international organisations and diplomatic missions