To Buy Or Not To Buy
The one-and-a-half hour long Union Budget 2022 speech was full of futuristic dreams and high on technology. Nirmala Sitharaman’s second pandemic Budget came as a ray of shining hope for many, but also dampened expectations of some manufacturers. From jewellery to mobile phones and more, many items will get cheaper this year, while a number of products, especially our beloved umbrella, will burn a hole in your pocket. Here’s a look at all the products that will become dearer or cheaper in the months ahead.
Clothes & Leather: Cheaper
You don’t have to rethink about that new leather sofa or footwear or jacket! Seriously.Sitharaman decided to exempt custom duty on capital goods like leather, footwear and textiles. Duty will also be exempted on other capital goods like embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes.
The FM said this would help bonafide exporters who might need handicrafts, textiles and leather garments, leather footwear and other goods.
Petrol & Diesel: Costlier
Driving your favourite ride around the city will be a costly affair.
In the Budget, the FM increased the excise duty on unblended fuel by Rs 2 per litre from October 1, 2022. This move is aimed at promoting blended biofuel like petrol or diesel.
However, Sitharaman said that custom duties on some chemicals needed for petroleum products would get some concession. It has to be seen how the fuel prices react.
Currently, petrol is priced at Rs 95.41 per litre in Delhi and Rs 109.98 per litre in Mumbai, while diesel costs Rs 86.67 per litre in Delhi and Rs 94.14 per litre in Mumbai.
No sin tax here!
Your love for chocolates might take a sweet turn. Finance Minister Sitharaman announced that the custom duty on imports of cocoa beans would be rationalised.
Some items that joined the cheaper list were frozen mussels, frozen squids and asafoetida.
Smartwatches & Earbuds: Costlier
This may not be the perfect time to invest in smartwatches, smart bands, headset and earbuds.
The FM has decided to calibrate custom duty on manufacturing of wearable, hearables and shareable devices, and electronic smart metres. This will provide a graded rate structure to facilitate domestic manufacturing of wearables.
Mobile Phones & Electronics: Cheaper
You don’t need to depend on online sales anymore. Sitharaman has announced custom duty concessions to parts of the transformer of mobile phone, chargers, camera lens of mobile camera module, and certain other such items.
This will boost manufacturing of high-growth electronics, she added.
Imitation Jewellery: Costlier
Buying imitation jewellery may cost more now.
In order to disincentivise import of undervalued imitation jewellery, the government has decided to levy a custom duty of at least ?400 per kg on imitation jewellery.
Gold & Silver Jewellery: Cheaper
It’s time to plan grand celebrations, and begin your gold and silver jewellery shopping. Also, add specially cut and polished diamonds and gemstones to the shopping list while you are at it.
The FM decided to rationalise custom duty on gold and silver jewellery and gems by bringing it down to 5 per cent, and nil in some cases. This is said to facilitate exports.
Your rainy day solution takes a hit. The government took the stay at home and work protocol amid Covid too seriously when it decided to raise the custom duty on umbrellas to 20 per cent.
Other Cheaper & Costlier Items
While the government said all imported items would become expensive, the minister reduced custom duty on certain chemicals, including methanol and acetic acid.
Moreover, the concessional customs duty on steel scrap has been extended for another year. “Certain anti-dumping duties and countervailing duties on certain steel products are being revoked due to high prices,” Sitharaman added in her Budget speech.