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Home Articles Union Budget 2020: What Gets Cheaper and Whats Costly?

Union Budget 2020: What Gets Cheaper and Whats Costly?

IndianMoney.com Research Team | Posted On Wednesday, February 05,2020, 03:26 PM

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Union Budget 2020: What Gets Cheaper and Whats Costly?

 

 

Nirmala Sitharaman presented the Union Budget 2020 on February 1st 2020. This Budget brings joy to many people and also disappoints a few. Let’s take a look at what gets costly and what’s cheaper after the Union Budget 2020.

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Union Budget 2020: What Gets Cheaper and What’s Costly?

What’s Costly?

1. Cigarettes and Tobacco Products Will Be Costly:

There is an increase in excise duty on hookah, cigarettes and tobacco products. Smoking is really going to pinch your pocket. The lower priced cigarette packets could go up by 6-7%, while for the premier packets the price hike would be 4-5%. Even if the cigarette-makers absorb a share of the price hike, smokers would still have to pay 3.5-4% higher amounts on cigarette packets.

This is definitely bad news for ITC which sells 3 out of every 4 cigarette packets.

See Also: All You Must Know About Tax Planning

2. Imported Medical Equipment Gets Costly

The Government has decided to impose a 5% health cess on imported medical equipment. This is over and above the basic customs duty (BCD). This will definitely increase the medical treatment costs for patients even as the focus remains on Make in India.

The cess could trouble the healthcare sector in India which is heavily dependent on imported medical devices to offer affordable treatment to patients.

3. Imported Footwear and Furniture to Get Costly

You would have to pay more for that imported pair of shoes, furniture, shelled walnuts, kitchenware, hairdryers and so on. If you love that swanky piece of imported furniture, then prepare for a shock. Its price is on the way up. Why, even the wall fan prices are on the way up.

See Also: Last Minute Tax Planning: What You Should Do?

IKEA is disappointed with the custom duty hike. This impacts not just the furniture, but also the home furnishing segment in the country.

Increase in BCD (Basic Customs Duty):

Name of the Product

BCD

Compressor for ACs and Refrigerators

2.50%

Chewing Gum

15%

Infant Food

20%

Footwear, Furniture and Light Fittings

5%

Toys

40%

Shelled Walnuts

70%

Feature phones, food grinders, coffee and tea makers, butter, cheese

10%

Imported Toys Just Got Costly

Your child is going to cry real soon. Those tiny scooters, pedal driven cycles and scale model dolls imported from China, just got costly. There’s a massive customs duty hike from 20% to 60%.

Your Baby’s health and happiness just got costly. Imported toys will cost a bomb.

See Also: How Does an Income Tax Calculator Work?

What’s Cheaper?

Reading Magazines Just Got Cheaper:                                                           

If you love reading imported magazines there’s great news. That Washington Post just got cheaper. The Finance Minister has cut the customs duty on newsprint import and light weight coated paper to 5%.

Simply swallow your favorite columns from International magazines without burning a hole in your pocket.

The Favorite Sweet Just Got Cheaper

The custom duty on raw sugar has been withdrawn. Your favorite mithais just got cheap. If you have a sweet tooth it’s time to munch on your favorite desserts. 

See Also: How Is Your Income Tax Calculated?

Skimmed Milk for the Diet-Conscious

If you love a hot cup of coffee or that cup of chai; there’s good news. The diet-conscious can enjoy tea and coffee with low-fat milk (skimmed milk) without any worry.

Customs Duty has been withdrawn on skimmed milk. You get to enjoy low-fat milk at a real cheap price.

So What’s Cheaper After Union Budget 2020?

Soya Protein

Soya Fibre

Some Alcoholic Beverages

Skimmed Milk

Tuna Bait

Raw Sugar

Agro-Animal based products

Chemicals, Fuse, Plastics

Purified terepthalic acid

Lightweight-coated paper

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