The FM proposed to provide relief in customs duty on import of certain parts and inputs like camera lens and continue the concessional duty on lithium-ion cells for batteries for another year. To promote value addition in manufacture of televisions, it is proposed to reduce the basic customs duty on parts of open cells of TV panels to 2.5 per cent.

The basic customs duty on electric kitchen chimney is being increased from 7.5 per cent to 15 per cent and that on heat coils for these is proposed to be reduced from 20 per cent to 15 per cent. it is proposed to exempt basic customs duty on Denatured ethyl alcohol. This will a support the Ethanol Blending Programme and facilitate our endeavour for energy transition.

Basic customs duty is also being reduced on acid grade fluorspar from 5 per cent to 2.5 per cent to make the domestic fluorochemicals industry competitive. Further, the basic customs duty on crude glycerin for use in manufacture of epicholorhydrin is proposed to be reduced from 7.5 per cent to 2.5 per cent. Duty is being reduced on key inputs for domestic manufacture of shrimp feed. The FM proposed to reduce basic customs duty on seeds used in their manufacture.

Customs Duties on dore and bars of gold and platinum were increased earlier this fiscal. The FM now proposes to increase the duties on articles made therefrom to enhance the duty differential. She also proposed to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum. To facilitate availability of raw materials for the steel sector, exemption from Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued. Similarly, the concessional BCD of 2.5 per cent on copper scrap is also being continued to ensure the availability of raw materials for secondary copper producers who are mainly in the MSME sector.

The basic customs duty rate on compounded rubber is being increased from 10 per cent to 25 per cent or Rs 30/kg whichever is lower', at par with that on natural rubber other than latex, to curb circumvention of duty. National Calamity Contingent Duty (NCCD) on specified cigarettes was last revised three years ago. This is proposed to be revised upwards by about 16 per cent.

Micro enterprises with turnover up to Rs 2 crore and certain professionals with turnover of up to
Rs 50 lakh can avail the benefit of presumptive taxation. FM proposed to provide enhanced limits of Rs 3 crore and Rs 75 lakh respectively, to the tax payers whose cash receipts are no more than 5 per cent. It is also proposed to allow deduction for expenditure incurred on payments made to them only when payment is actually made.

Outlook:

The announcements regarding personal income taxes will likely offer a direct push to consumption spending particularly in the semi urban areas. Focus on affordable housing will also mostly benefit the population in this region only. The budget does a good job on this front as it increased the PM AwasYojana outlay by 66 per cent to Rs 79000 crore. However, the increase in duties on precious metals will likely hurt the demand for jewellery.