Indirect Taxes – Union Budget 2024-25

Indirect Taxes Budget 2024 :

Indirect Taxes are those taxes that are collected by an intermediary(such a retailer) from the person who bears the ultimate economic burden of the tax (such as the consumer). The intermediary later files a tax return and forwards the tax proceeds to the government with the returmn. Essentially, indirect Taxes are levied on goods and services rather than on income or profits.

In the Union Budget 2024, several key changes and continuities in indirect taxes were announced. Here are the major highlights :

1. Customs duty on three more medicines to be fully removed, to provide relief to cancer patients.
2. Basic customs duty on mobile phone, mobile PCBA and mobile charger to reduced to 15%
3. 25 critical minerals to be exempted from customs duties & basic customs duty on two of them to be reduced
4. List of exempted capital goods for use in the manufacture of solar cells & panels in the country to be expanded
5. Customs duty proposed to be removed on oxygen free copper for manufacture of resistors & certain parts for manufacture of connectors to be exempted
6. BCO to be reduced to 5% on certain brood stock, polychaete worms, shrimp & fish feed
7. BCO to reduce on real down filling material from duck or goose
8. BCO on methylene diphenyl diisocyanate (MDI) for manufacture of spandex yarn to be reduced from 7.5 to 5%
9. Customs duties on gold and silver to be reduced to 6% & on platinum to 6.4%

Also read : Changes in new Tax Regime announced : Union Budget 2024