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