Union Budget 2024: What becomes cheaper and what’s costlier?

On Tuesday, Finance Minister Nirmala Sitharaman presented the Union Budget 2024. In her budget speeach, finance minister revealed policies some measures to bring down the prices of several items for Indian consumers.

Gold, silver and other precious metals along with imported mobile phones, certain cancer drugs and medical devices are set to become cheaper with Finance Minister Nirmala Sitharaman announcing cuts in customs duty in the Union Budget 2024-25.

However, certain items such as imported garden umbrellas and laboratory chemicals are also set to become costly due to an increase in basic customs duty.

FM announced a major reduction in customs duty on cancer drugs and mobile phones, it is set to considerably bring down their prices in the market. The three cancer drugs are Trastuzumab deruxtecan, Osimertinib and Durvalumab. The Finance Minister also announced a reduction of customs duty on mobile phones and mobile chargers to 15 per cent.

“The government will exempt three cancer treatment drugs from customs duty. I will also reduce basic customs duty on mobile phones, chargers and other mobile parts,” FM Sitharaman said presenting the Budget 2024.

Dr. Kumardeep Dutta Choudhury Director, Medical Oncology, Max Hospital, New Delhi says the exemption of customs duties on cancer drugs will have a profound impact on patients battling cancer.

“By eliminating the customs duties, the cost of these drugs will decrease, making them more accessible to patients who need them. This move not only reduces the financial burden on patients and their families but also ensures that more individuals can benefit from these advanced therapies, potentially improving survival rates and quality of life for many cancer patients in India.” he said.

These medications are crucial in the treatment of various types of cancer, with Trastuzumab Deruxtecan specifically targeting certain breast cancers, Osimertinib used for specific lung cancers, and Durvalumab for urothelial carcinoma and other cancers.

Other products that are set to become cheaper include mobile phones, imported gold, silver, leather goods and seafood. The reduction in duties on gold and silver by 6 per cent will significantly give a fillip to the retail demand.

Commenting on the announcement, Sachin Kothari, Director Of Augmont – Gold For All says its a welcome step for the bullion industry, as bullion market participants have been waiting for this duty cut for a long time.

“Bullion market participants were expecting a 5% cut in duties, but FM has announced a 9% cut, which is a commendable step from the government. Indian consumers would be able to buy now at a 9% cheaper rate from today, so it will boost physical demand. MCX Gold prices have fallen by Rs 4000 from Rs 73000 to Rs 69000 as a knee-jerk reaction after this announcement and are expected to fall more up to around Rs 67000/ 10 gm as per international pegged price,” he said.

FM Sitharaman also proposed a reduction in customs duties on platinum by 6.5 per cent and 5 per cent cut on seafood which includes shrimps and fish feed. For the salaried class, the Finance Minister announced tax sops for over 4 crore salaried individuals.

Those under the new tax regime, have been given relaxation in the standard deduction limit from Rs 50,000 to Rs 75,000 while the deduction on family pension for pensioners has been enhanced from Rs Rs 15,000 to Rs 25,000 This will provide relief to about four crore salaried individuals and pensioners, the Finance Minister said.

The following is a list of items set to become cheaper and costlier.

CHEAPER—

Gold bar and dore

Silver bar and dore

Platinum, Palladium, Osmium, Ruthenium and Iridium

Coins of precious metals

Platinum and Palladium used in the manufacture of noble metal solutions, noble metal compounds and catalytic convertors

Cancer Drugs: Trastuzumab Deruxtecan, Osimertinib, Durvalumab

Medical Equipment

All types of polyethylene for use in manufacture of orthopaedic implants

X-ray tubes for use in manufacture of X-ray machines for medical, surgical, dental or veterinary use

Flat panel detectors (including scintillators) for use in manufacture of X-ray machines for medical, surgical, dental or veterinary use

Imported cellular mobile phone

Charger/Adapter of cellular mobile
Printed Circuit Board Assembly (PCBA) of cellular mobile phone
Specified capital goods for use in manufacture of solar cells or solar modules, and parts for manufacture of such capital goods
Shea nuts

Fish lipid oil for use in manufacture of aquatic feed
Crude fish oil for use in manufacture of aquatic feed
Natural Graphite

Natural sands of all kinds

Quartz

Critical Minerals
Lithium carbonates
Lithium oxide and hydroxide
Nitrates of potassium
Steel Sector— Ferro Nickel and Blister Copper
Textile and Leather Sector

Methylene Diphenyl Di-isocyanate (MDI) for use in the manufacture of Spandex Yarn

COSTLIER—

Poly vinyl chloride (PVC) flex films (also known as PVC flex banners or PVC flex sheets)

Garden umbrellas

Laboratory chemicals

Solar glass for manufacture of solar cells or solar modules

Tinned copper interconnect for manufacture of solar cells or solar modules.