Union Budget 2025: What is cheaper, what is costlier?

In her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced a series of changes to customs duties, offering both relief and increased costs for various sectors.

Also Read: Union Budget 2025: FM announces major personal Income Tax reforms, nil tax for up to Rs 12 lakh

What’s Cheaper?
A significant reduction in customs duties has been announced on several essential goods. Life-saving medicines for cancer and chronic diseases will now be fully exempt from basic customs duties (BCD), benefitting the healthcare sector. Additionally, BCD on electronic components, including open cells, has been reduced to 5%. Several critical minerals, such as cobalt powder, lead, and zinc, will also be exempt from BCD, benefiting industries like battery manufacturing. The electric vehicle (EV) sector will see exemptions for 35 goods related to EV battery manufacturing, alongside 28 items for mobile phone battery production. Customs duties on leather products like jackets, shoes, and purses will be reduced, and a new scheme for the leather sector is expected to create millions of jobs and boost revenue. Furthermore, the duty on Frozen Fish Paste (Surimi) has been slashed from 30% to 5% to aid its manufacturing and export.

What’s Costlier?

On the flip side, some goods will see price hikes. The BCD on flat-panel displays, which affect TVs and mobile phones, has been increased from 10% to 20%. Additionally, the exemption on 82 tariff lines under the social welfare surcharge has been removed, which could lead to higher prices for certain imported goods.

The changes in customs duties are expected to impact various sectors, with both benefits and challenges for consumers and businesses alike.