With an aim to promote exports and domestic manufacturing, the Union Minister has announced a tax structure in a simplified manner. The structure includes tax rates which are lesser and reduces the compliance burden.
In the budget presented, it was announced that the basic custom duty rates of textiles and agriculture are reduced from 21 to 13. This would be a basic cesses and surcharges which would be levied on certain goods and taxes. The taxes are blended to compress the excise GST. The GST would be exempted on import of capital goods and machinery
The GST has been reduced on other items such as camera lens. The concessional duty will continue for lithium goods, cells and batteries for the next 1 year. This will deepen the domestic value and help in manufacturing of mobile phones at a faster rate.
What are the other products which have faced fewer rates on custom duty?
The BCD and some open parts of TV panels are a part of the reduced rates. There is a 2.5% reduction in the promote the value addition so as to promote television and some of the parts.
Other products facing taxes are:
- An increase in the BCD on electric kitchen can be seen increasing to 7.5%.
- Reduction on heat coils by 15-20%. The reduction in the percentage would help in rectifying the duty structure and helping in better manufacturing of electric kitchen chimneys.
- There is a reduction on the BCD of the acid-grade fluorspar to 2.5%. The reduction will make the industry more competitive.
- BCD on crude glycerin will reduce to 2.5% to give rise to the production of epichlorohydrin.
The marine domestic manufacture enables the competitiveness of marine products. This will benefit the farmers from the coastal states of the country. This has already contributed to the global turnover. The global turnover will happen by cutting.
By cutting the value on diamonds, the industry will grow faster. In the budget, the rates of gold and silver were increased in order to align with Dore, bare and articles of silver, gold and platinum.