Finance Minister Unveils Major Changes in Customs Duties Amid Budget Speech

Finance Minister Nirmala Sitharaman announced significant changes in customs duties during her budget speech. Key highlights include reductions on gold, silver, platinum, and mobile phone components. Exemptions were also made for critical minerals and specific items used in solar manufacturing. New e-commerce export hubs will facilitate MSME participation in international trade.

Finance Minister Nirmala Sitharaman on Tuesday announced significant changes in customs duties during her budget speech in the Lok Sabha. The basic customs duty on gold and silver was reduced to 6 percent, while platinum saw a reduction to 6.4 percent.

Additionally, the basic customs duty on mobile phones and chargers was proposed to be reduced to 15 percent, alongside exemptions for 25 critical minerals.

Customs duty on ferronickel and blister copper was removed, and the duty on specified telecom equipment was increased to 15 percent from 10 percent. In the area of agriculture, reductions on brood stocks, shrimps, and fish feed were set to 5 percent.

Conversely, duties on ammonium nitrate and non-biodegradable plastics will be raised to 10 percent and 25 percent, respectively. Sitharaman also announced the establishment of e-commerce export hubs under a public-private partnership model to help MSMEs expand internationally.

Furthermore, the minister proposed an expansion in the list of exempted capital goods used in manufacturing solar cells and panels.