Union Budget 2023-24 : Government Proposes to Cut Customs Duty on Goods to 13% from 21%
By SCMCube February 06, 2022
According to Union Finance Minister Nirmala Sitharaman's speech in Lok Sabha on February 1, 2023.
There were minor changes in the basic customs duties, cesses and surcharges on some items including Toys, Bicycles, Automobiles and Naphtha.
Important Highlights of the Union Budget – 2023
- The government also proposed to reduce customs duty on the import of certain inputs for mobile phone manufacturing. Customs duty on parts of open cells of TV panels cut to 2.5%.
- Basic custom duty on acyclic & cyclic hydrocarbons rationalized to 2.5%.
- The Union Budget proposed an increase in the basic customs duty on compounded rubber from 10% to 25% or ₹30 per kg, whichever was lower, at par with natural rubber, other than latex.
- To address the current account deficit (CAD) and surging imports of the yellow metal, the Centre increased the import levy on gold from 10.75 per cent to 15 per cent in July of this year. 12.5 per cent is the standard customs charge on gold.
- For bicycles, the new rate is 35% as against existing 30%; for toys and parts of toys, other than parts of electronic toys, it will be 70% (60%). BCD on naphtha has been increased from 1% to 2.5%.
- Customs duty on electric vehicles in completely built units (CBUs), other than with cost, insurance and freight (CIF) value of more than $40,000 has been raised to 70%, from 60%.