- Date : 02/02/2023
- Read: 4 mins
Do you want to understand how the Union Budget has affected you? Read this article to know what's cheaper and more expensive after the budget.
The Indian Finance Minister recently presented the Union Budget for 2023-24 in Parliament. This budget has been widely discussed for its potential to impact the lives of common people in India. This article provides an in-depth analysis of the budget, focusing on the changes in prices of essential items for the citizens. It helps understand the budget's implications on the cost of living in India and how it affects the common person's pocket. Given below are prominent points discussed in this article:
- Significance of the current Union Budget
- Highlight of Economic Survey 2022-23
- Simplifying Tax Structure
- What's cheaper and what's expensive after the Union Budget 2023?
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Significance of the current Union Budget
The current budget holds great importance, as the nation is set to have the next general election in April-May 2024. The budget session of Parliament began on Tuesday with the President's speech, followed by the 2022-23 Economic Survey presentation. Creating the annual budget for the 2023-24 fiscal year started on October 10th.
Highlight of Economic Survey 2022-23
According to the Economic Survey, India has fully recovered from the economic impact of the Covid-19 pandemic. It is projected to experience 6% to 6.8% growth during the 2023-24 fiscal year. This represents a slowdown compared to the 7% growth seen in the current fiscal year and the 8.7% growth experienced in 2021-22.
Simplifying Tax Structure
Finance Minister Nirmala Sitharaman highlighted the importance of a simplified tax structure with reduced tax rates to ease compliance requirements and enhance tax administration. To this end, she proposed reducing the Basic Customs Duty (BCD) rates for goods, excluding agriculture and textiles, to 13 from 21. The minister also noted that there would be minor adjustments to the BCD, surcharges and cesses for items such as automobiles, bicycles, toys, and naphtha.
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What's cheaper and what's expensive after the Union Budget 2023?
Below is a list of items that have become expensive or cheaper due to the Union Budget.
- Cigarettes. Taxes hiked by 16 %
- Kitchen chimney: Customs duty increased to 15% from 7.5%
- Gold bars and accessories: Customs duty hiked
- Compounded rubber: Basic import duty increased from 10% to 25%
- Imported bicycles and toys: Basic customs duty raised
- Fully imported Cars and Electric Vehicles: Customs duty raised
- Articles made from silver: Import duty hike
- Articles made from gold: Custom duty hike
- Articles made from platinum: Central excise duty raised
- Imitation jewellery: Increase in central excise
- Naphtha: Basic Customs duty increased
- Domestically manufactured TV sets: Basic customs duty on parts of open cells of TV panels reduced
- Mobile phones: Basic customs duty on its components reduced
- Lithium batteries: Customs duty exemption extended
- Shrimp feed: Customs duty reduced
- Fish lipid oil used in manufacturing aquatic feed: Customs duty reduced
- Seeds for lab-grown diamonds: Basic customs duty reduced
- Capital goods: Customs duty exemption extended
- Denatured ethyl alcohol: Exempted from Basic customs duty
- Acid-grade fluorspar: Basic customs duty reduced
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The Union Budget 2023-24 presents an opportunity to shape the economic landscape of India, particularly regarding the cost of living for citizens. As the nation prepares for the upcoming general election in 2024, it is crucial to evaluate the budget's impact on key consumer goods and services. The proposed changes to duties, levies, and other economic factors will likely result in increased costs for certain products, such as cigarettes, imported cars and toys, and jewellery items. Conversely, the budget also presents opportunities for cost savings, as domestically manufactured TV sets, mobile phones, and capital goods are expected to become more affordable. As stakeholders and industry leaders assess the implications of the budget, it is important to stay informed and engaged to ensure the best outcomes for all.