What gets costlier, what gets cheaper: A review of Union Budget
Below is a clear look at what gets cheaper and what may become expensive after the Budget
By Sistla Dakshina Murthy
Representational Image
New Delhi: The Union Budget presented by Finance Minister Nirmala Sitharaman on Sunday is set to ease the cost burden on households and key industries by lowering taxes and customs duties on medicines, electronic devices, clean-energy equipment, foreign travel and education.
However, the budget will also tighten penalties and levies on luxury goods, speculative trading and tax non-compliance.
Below is a clear look at what gets cheaper and what may become expensive after the Budget.
Prices are likely to come down in:
1. Overseas travel and education
Foreign tour packages: Tax Collected at Source (TCS) reduced to 2%, making international travel cheaper.
Foreign education expenses: TDS under the Liberalised Remittance Scheme (LRS) cut for education-related remittances.
2. Industry, energy and manufacturing
Alcoholic liquor waste and select minerals: Customs duty reduced from 5 to 2%.
Shoe upper exports: Raw materials required for exports are made duty-free.
Solar panels: Basic Customs Duty (BCD) removed on key inputs.
Energy transition equipment: BCD exemption announced.
Capital goods and critical minerals: Exempted from BCD.
Personal-use electronic devices: BCD reduced from 20 to 10%.
3. Healthcare and essential sectors
Medicines: BCD removed on 17 drugs used for cancer, rare diseases and diabetes treatment.
Fish caught by Indian fishermen: From India’s coastal waters up to Special Economic Zones (SEZs).
Nuclear power projects: Equipment used for nuclear power generation.
Electric vehicles: Batteries used in EVs.
4. Transport and electronics
Smartphones and tablets are manufactured in India.
Aircraft parts and components.
Prices likely to rise in:
1. Taxes and compliance
Penalty for incorrect income disclosure: Increased by 100%.
Undisclosed movable assets: New penalties to be imposed.
2. Financial and luxury segments
Futures and options (F&O) trading: Higher costs expected.
Luxury items: High-end watches, alcohol, cigarettes, bidis, pan masala and gutka.
3. Machinery and agriculture
Coffee roasting, brewing and vending machines: Higher duties may push prices up.
Certain fertilisers: Import fees removed, but prices of products like ammonium phosphate and ammonium nitro-phosphate could rise.
4. Media and creative equipment
Filming equipment and cameras: Prices may increase due to duty changes.
Overall impact
The Union Budget announced on Sunday aims to balance consumer relief with revenue mobilisation.
While healthcare, clean energy, electronics manufacturing and exports stand to benefit from lower costs, luxury consumption, speculative trading and non-compliance will face tighter taxation, reshaping spending patterns across sectors.
