Budget 2010 : What’s cheaper/costlier after India Budget
Expense: Cars
Verdict: Costlier
Will this one temper the mood of India’s sizzling-hot auto market? Looking at the cars queued up to launch here, it doesn’t look like.
Why: Peak excise duty increased. Ad valorem component of excise duty on large cars, multi-utility vehicles is being increased by 2% points to 22%.
Expense: Medical equipments
Verdict: Cheaper
What with the whole world wanting to touch down here for treatment, this serves the perfect morale-booster for the industry.
Why: A concessional basic duty of 5% is being prescribed on parts and accessories for the manufacture of such equipment while they would be exempt from CVD and special additional duty.
Expense: Microwave oven
Verdict: Cheaper
Lower costs, which translate into more ovens and washing machines and dishwashers and fruit juicers. More power to the modern Indian kitchen.
Why: Reduction in customs duty on one of its key components, namely magnetrons from 10% to 5%.
Expense: Mobile phones
Verdict: Cheaper. You have got a double delight. Now, lap up cheaper phone calls, thanks to the war amongst operators, and buy phones cheaper.
Why: To encourage the domestic manufacture of accessories, duty exemptions are now being extended to parts of battery chargers and hands-free headphones. Also, the validity of the exemption from special additional duty is being extended till March 31, 2011.
Expense: Jewellery
Verdict: Costlier.
Maybe austerity isn’t too bad an idea, after all.
Why: The FM has raised the duty on imports of gold and platinum to Rs 300 rupees per 10 grams from Rs 200.
Expense: Watches
Verdict: Cheaper. Classic formals or the sporty chrono? Go ahead, indulge yourself.
Why: FM has proposed to provide an outright 4% exemption from special additional duty to goods imported in a pre-packaged form for retail sale.
Expense: Tobacco
Verdict: Costlier. “Since I quit smoking many years ago, I would urge others to also follow suit, as smoking is injurious to health,” the FM said. Maybe now.
Why: FM proposes excise duty on all non-smoking tobacco such as scented tobacco, snuff, chewing tobacco etc.
In addition, he introduces a compounded levy scheme for chewing tobacco and branded unmanufactured tobacco based on the capacity of pouch packing machines.
Expense: Refrigerators
Verdict: Cheaper
Get more cooling capacity out of each buck. Buy refrigerators for less.
Why: Full exemption from customs duty to refrigeration units required for the manufacture of refrigerated vans or trucks has been proposed.
Expense: LED lights
Verdict: Cheaper
Why: Central Excise duty on LED lights reduced from 8% to 4%, at par with Compact Fluorescent Lamps.
Expense: Toys
Verdict: Cheaper
Toy balloons are a source of joy to millions of children.
Why: To bring a smile to their mothers’ faces, the FM has proposed to fully exempt them from Central Excise duty.
Expense: Long pepper and Asafoetida
Verdict: Cheaper
Why: Basic customs duty on long pepper reduced from 70% to 30% and on Asafoetida from 30% to 20%
Expense: Digital Cable Transmission
Verdict: Cheaper
Why: FM has proposed
project import status to Digital Head End equipment at a concessional customs duty of 5% with full exemption from special additional duty to the initial setting up of such projects.
Popularity: 13% [?]
Category: Budget
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