New Delhi5 minutes ago
- Copy link
This time in the budget, the government has removed custom duty from 36 life saving medicines. Apart from this, duty removal has also been announced from lithium-ion battery scrap. This will make life saving medicines and batteries cheaper. At the same time, the government has increased the duty on interactive flat panel display from 10% to 20%, which will make it expensive.
However, how cheap or expensive these products will be is not decided. The government implemented GST across the country on 1 July 2017, after which only custom duty is increased in the budget. The increase in duty and decrease affects the prices of things.
Cheap
|
Product |
Reason |
| Life saving medicines |
Custom duty removed from 36 life saving drugs |
| Battery | Duty removed from lithium-ion battery scrap |
| Ship manufacturing | Custom duty removed from Raw Material |
| Footwear, furniture, handbags | Custom duty removed from weight blue leather |
Costly
|
Product |
Reason |
| Interactive flat panel display | Custom duty increased from 10% to 20% |
See in 7 graphics what has become cheap in the last one year and what expensive …
In 3 questions, know how the prices of goods decrease in the budget
Question 1: How are the products cheap in the budget? answer: No product in the budget is directly cheap-cheaper. Things are cheaper and cheaper due to the reduction of indirect tax like custom duty, excise duty. The increase in duty and decrease affects the prices of things.
Understand this with an example. Suppose, the government announced in the budget that it is cutting the import duty on gold by 10%. The effect of this will be that gold from abroad will be 10% cheaper. That is, gold jewelery, biscuits, coins prices will be reduced.
Question 2: What is indirect tax? Answer: Taxation is divided into direct tax and indirect tax:
i. Direct Tax: It is imposed on people’s income or profits. Taxes like Income Tax, Personal Property Tax come in it. The burden of direct tax bears only the person who has been taxed and cannot be passed to anyone else. The Central Board of Direct Taxes (CBDT) governs it.
ii. Indirect tax: It is imposed on goods and services. Taxes like custom duty, excise duty, GST, VAT, service tax come in it. Indirect tax can be shifted from one person to another.
For example, wholesaler passes it to retailers, who pass it to customers. That is, it affects customers in the end. This tax is governed by the Central Board of Indirect Taxes and Customs (CBIC).
Question 3: In the first budget itself, the prices of goods like TV, fridge, AC used to decrease, why does it not happen now? answer: Actually, the government implemented GST across the country on 1 July 2017. GST has about 90% of the products in the radius and the GST council takes all the decisions related to GST. Therefore, there is no change in the prices of these products in the budget.
