In a significant move to reduce retail prices, Union Finance Minister Nirmala Sitharaman on Tuesday announced major reductions in customs duty on cancer medicines and mobile phones while presenting the Union Budget 2024-25 in Parliament. This initiative aims to make essential commodities more affordable for consumers.
“The government will exempt three more cancer treatment drugs from customs duty. I will also reduce basic customs duty on mobile phones, chargers, and other mobile parts,” Sitharaman said.
ALSO READ: Union Budget 2024: Medical fraternity welcomes exemption of customs duty from 3 cancer treatment medicines
Imported gold, silver, leather goods, and seafood will also become cheaper following the Budget announcement. The Finance Minister slashed import duties on gold and silver to 6 percent, a measure that industry officials believe could boost retail demand and help curtail smuggling in the world’s second-biggest bullion consumer.
Higher demand for gold from India could support global prices, which reached a record high earlier this year. However, this may increase India’s trade deficit and put additional pressure on the rupee.
On the other hand, the government will raise customs duty on ammonium nitrate by 10 percent and on non-biodegradable plastics by 25 percent.
ALSO READ: Markets tumble after Centre hike in capital gains tax in Union Budget 2024
This is the first budget of the Modi 3.0 government and is expected to have a significant impact on India’s economic landscape, touching upon various sectors from infrastructure development to social welfare programs.
Prime Minister Narendra Modi, ahead of the budget presentation, assured that the Finance Minister would present a strong budget, ensuring that the government’s guarantees reach the common man. On the first day of the Monsoon Session of Parliament, Nirmala Sitharaman tabled the Economic Survey in Parliament.
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Meanwhile, Indian share markets Sensex and Nifty experienced a significant dip following Sitharaman’s announcement of increased capital gains taxes in the Union Budget 2024.
The Long Term Capital Gains (LTCG) tax has been raised from 10 percent to 12.5 percent, while the Short Term Capital Gains (STCG) tax on certain assets will increase from 15 percent to 20 percent. Additionally, the securities transaction tax (STT) on futures and options has been raised to 0.02 percent and 0.1 percent, respectively.
