Union Budget 2022

Union Budget 2022: Know which items have become cheaper and what are costly now

Finance Government

On Tuesday, Union Finance Minister Nirmala Sitharaman introduced the Union Budget for the fiscal year beginning April 1(Union Budget 2022). As Asia’s third-largest economy rebounds from a pandemic-induced depression, infrastructure has emerged as the main priority for the Narendra Modi administration, with the finance minister stating that the budget for 2022/2023 (Union Budget 2022) will build the groundwork for economic recovery through public investment.

Imported cut and polished diamonds, frozen mussels, frozen squids, asafoetida, cocoa beans, methyl alcohol, and acetic acid, on the other hand, will become cheaper as a result of customs duty rationalization.

The full list of imported items will get costlier, from headphones to X-ray machines.

  • Headphones and earphones
  • Imitation Jewellery
  • Parts of electronic toys
  • Umbrella
  • Unblended petrol and diesel
  • Single or multiple loudspeakers
  • Smart meters
  • Solar cells
  • Solar modules
  • X-ray machines

Here’s is a list of items that will become cheaper in FY23:

  • Acetic acid
  • Asafoetida
  • Camera lens for cellular mobile phones
  • Chemicals needed for petroleum products
  • Clothes
  • Cocoa beans
  • Cut and polished diamonds
  • Frozen mussels
  • Frozen squids
  • Methyl alcohol
  • Steel scrap

According to FM Sitharaman, customs tax on cut and polished diamonds and gemstones has been decreased to 5%, with plans to phase away more than 350 customs duty exemptions over time.

Customs duty rates will be calculated to create a graded rate structure to stimulate local manufacture of wearable, hearable, and electronic smart meters. To support local production of high-growth electronic products, Sitharaman announced tax discounts on portions of transformers used in mobile phone chargers, camera lenses used in mobile camera modules, and certain other items.

The finance minister announced an exemption for agricultural implements and tools made in India.

To stimulate shrimp aquaculture exports, the Centre would reduce tax on some inputs used in the industry. Tariff measures will be used to encourage fuel mixing. Meanwhile, petrol and diesel may become more expensive as unblended fuel would be subject to an extra differential excise charge of Rs 2/litre from October 1, 2022, to incentivize fuel blending.