Last Update: February 03, 2023, 12:29 IST
To further promote green mobility, customs duty exemption on import of machinery for capital goods and batteries used in electric vehicles is being extended.
Basic Customs Duty (BCD) on toys and their parts has been increased from 60% to 70%.
In his budget speech on 1 February, the Union Finance Minister Nirmala Sitharaman Suggested increase in basic customs duty (BCD) on several items to support exports, domestic manufacturing, value addition at home, green energy and mobility. Increase in customs duty on imported goods will increase the price of electric vehicles and other products made in India India Using imported components.
Here’s what will get costlier:
Customs duties have been increased on vehicles that are completely built units (CBUs) and cost less than $40,000 or have an engine capacity of less than 3,000 cc for petrol-powered vehicles and 2,500 for diesel-powered vehicles There are engines with engine capacity less than cc. From 60% to 70%.
Customs duty increased from 60% to 70% on electric vehicles in CBU form whose cost, insurance and freight (CIF) value does not exceed $40,000.
BCD on bicycle imports has been increased from 30% to 35%. The BCD for toys and their components has also been increased from 60% to 70%.
Styrene, vinyl chloride monomer, toys and toy parts (other than electronic toy parts), bicycles, cars in SKD and CBU form, silver bars, silver door, and naphtha are among the items where BCD is being manufactured .
Government has agreed to increase Agriculture Infrastructure and Development Cess (AIDC) on silver bars from existing 2.5% to 5% and on silver wire from 2.5% to 4.35%.
what gets cheaper
Import of certain capital goods and equipment required for the production of lithium-ion cells for batteries used in electric cars, as well as limits available for the production of lithium-ion cells for batteries used in mobile handsets is free from duty.
To further promote green mobility, customs duty is being exempted on import of machinery for capital goods and batteries used in electric vehicles.
Government has recommended removal of BCD from camera lens and input/sub-parts of camera module of mobile phones to below 2.5 per cent to increase domestic value addition.
BCD on components used in the production of open cells for TV panels has been reduced from 5% to 2.5%. It has also been suggested that the BCD on crude glycerine used to make epichlorohydrin be reduced from 7.5% to 2.5%.
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