Union Budget 2023-24: Customs duty hike on the cards?

The government has zeroed in on dozens of products across sectors — including aviation, electronics, steel and industry — for possible customs duty hike in the Budget for FY24 to curb “non-essential imports” and improve local production. According to a Financial Express report, private jets and helicopters, select consumer electronics products, plastics, certain iron & steel products, jewellery and leather could witness higher duties.

The government is also weighing proposals for duty cuts in some cases, especially to ensure smooth imports of raw materials. The commerce ministry has suggested that the import duty on gold and certain other products in the gems and jewellery sector be trimmed to boost exports of finished products. The organized gold jewellery retailers are urging the finance minister to cut gold import duty in the Union Budget 2023-24 as any reduction in duty will help curb gold smuggling, boost exports of gems and jewellery, and empower organised jewellery retailers to cash in on the surging domestic demand.