Finance Minister Nirmala Sitharaman presented her record ninth Budget in Parliament today (February 1). The focus has been on jobs, capital expenditure is up, and there have been no changes in income tax. How is the Budget going to impact you? What has become cheaper and what is more expensive?
Sports equipment: Sitharaman proposed the launch of 'Khelo India Mission' which would focus on employment, skilling and job opportunities in the world of sports. With this, sports equipment are expected to get better. "The Sports Sector provides multiple means of employment, skilling and job opportunities. Taking forward the systematic nurturing of sports talent which is set in motion through the Khelo India programme, I propose to launch a Khelo India Mission to transform the Sports sector over the next decade," she said.
Leather goods: The finance minister announced duty-free imports of specific inputs currently available for exports of leather. "I also propose to allow duty-free imports of specified inputs which is currently available for exports of leather or synthetic footwear to exports of shoe uppers as well," she said.
Cancer medicines: Sitharaman announced customs duty exemption on 17 cancer medicines and added 7 rare diseases for relief for patients. "To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines. I propose also to add 7 more rare diseases for the purposes of exempting import duties on personal import of drugs, medicines and food for special medical purposes used in their treatment," she said.
Sea food: Centre announced duty-free fish catch beyond territorial waters to support the fishermen community.
Microwave ovens: Government announced exemption from basic customs duty on specified parts used in the manufacture of microwave ovens.
Solar panels: In the energy sector, the government has extended the basic customs duty exemption on capital goods used to manufacture lithium-ion battery cells, and has also removed basic customs duty on the import of sodium antimonate used in making solar glass. Thus, solar panels may get cheaper.
Foreign education: Foreign education is expected to get cheaper. A lower TDS has been announced under the Liberalised Remittance Scheme for education expenses.
Foreign tourism packages: Overseas tourism packages are expected to get cheaper. The TCS (tax collected at source) rate has been cut from five per cent to 20 per cent to two per cent.
Costlier:
Luxury goods: Certain luxury items such as watches and imported alcohol will get more expensive following the Budget speech.
Coffee-related items: If you are a fan of specially brewed coffees, brace yourself. The government has removed exemptions on coffee roasting, brewing and vending machines, which is likely to make it more expensive.
Fertilisers: A few fertilisers are also set to get expensive as the government has removed import fee exemptions on the import of Ammonium phosphate or ammonium nitro-phosphate, which are used in the manufacture of manure and complex fertilisers.
Stock options and futures trading: Finance Minister Nirmala Sitharaman a hike in STT (Securities Transaction Tax) on Futures and Options, which will make derivatives trading more expensive. She announced that the STT on Futures has been raised to 0.05 per cent from 0.02 per cent and STT on Options has been increased to 0.15 per cent from 0.1 per cent.
Income tax misreporting: Misreporting of income tax will now attract a penalty equal to 100% of the tax amount.