Union Finance Minister Nirmala Sitharaman on Friday, 5 July, tabled her first budget in the Narendra Modi government’s second innings. Here is what the budget means for you.
The income tax rates applicable to the common taxpayer have not been touched, however, a few changes in terms of excise duty and cess have been proposed. The government announced an increase in the cess and excise duty each by 2 rupees per litre on petrol as well as diesel with the customs duty on gold went up to 12.5 percent from 10 percent. This means that fuel and gold will become costlier.
Ms Sitharaman said a higher customs duty on gold and precious metals will mobilise resources. Other than that, the government also increased the basic customs duty applicable to a range of products such as tiles, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV camera.
On the other hand, a reduction in the customs duty on certain raw materials and capital goods has been proposed to promote domestic manufacturing. These include amorphous alloy ribbon, ethylene di-chloride, propylene oxide, cobalt matte, naphtha, wool fibers, inputs for the manufacture of artificial kidney and disposable sterilized dialyser, and fuels for nuclear power plants.
Installation of AC in your house will be affecting your pocket a little as customs duty on indoor and outdoor split ACs has been doubled to 20 percent. Some other items that will be costlier are cigarettes, although marginally, with an excise duty of Rs 5 per 1000 sticks on cigarettes f all lengths, plus, imported books will be expensive as import duty of 5 percent will be imposed on their purchase.
On the other hand, customs duty has been exempted on select electric vehicle parts aimed to incentivise the purchase of EVs. This, the FM said, has been done to facilitate a shift from fossil fuels to environmentally friendly fuels.
In matters of housing finance, interest deduction has been raised to Rs 3.5 lakh for affordable housing — applicable until March 31, 2020 —as against Rs 2 lakh earlier.
Here’s the full list of items costlier and cheaper post the announcement of Budget 2019
Mountings for furniture
Certain synthetic rubbers
Optical fibre cable
Digital and video network recorders
Raw cashew nuts
Solar tempered glass or solar tempered glass
Capital goods and electronics