Budget 2023 Proposes Hike In Prices Of Imported Cars, Toys; Read To Know More

In her Budget speech on February 1, Union Finance Minister Nirmala Sitharaman suggested raising the Basic Customs Duty (BCD) on a number of commodities to support exports, domestic manufacturing, value addition at home, green energy, and mobility. Increased customs duty on imported items will raise the price of electric vehicles and other products manufactured in India using imported components.

Here Is What Will Get Expensive:

· The customs duty on vehicles that are completely built units (CBUs) and cost less than $40,000 or have engines that are less than 3,000cc engine capacity for gasoline-powered vehicles and less than 2,500cc engine capacity for diesel-powered vehicles has been increased from 60% to 70%.

· The customs duty on electrically powered vehicles in CBU form that do not have a cost, insurance, and freight (CIF) value of more than $40,000 has been increased from 60% to 70%.

· The BCD on bicycle import has been raised from 30% to 35%. BCD for toys and their components is also increased from 60% to 70%.

· Styrene, vinyl chloride monomer, toys and parts of toys (other than parts of electronic toys), bicycles, cars in SKD and CBU form, silver bar, silver dore, and naphtha are among the items where the BCD is being raised.

· The government has agreed to raise the Agriculture Infrastructure and Development Cess (AIDC) from the current 2.5% to 5% on silver bars and from 2.5% to 4.35 % on silver dore.

What Becomes Cheaper

· The import of certain capital goods and apparatus needed for the production of lithium-ion cells for batteries used in electric cars, as well as those available for the production of lithium-ion cells for batteries used in mobile handsets is free from customs duties.

· Customs duty exemption is being extended to import of capital goods and machinery for batteries used in electric vehicles, in order to further encourage green mobility.

· The government has recommended removing BCD from the camera lens and reducing input/sub-parts of the camera module of mobile phones from 2.5 percent, in order to increase domestic value addition.

· BCD on components used in the production of open cells for TV panels has been lowered from 5% to 2.5%. It is also suggested to lower the BCD on crude glycerin used to make epichlorohydrin from 7.5% to 2.5%.

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