Imported cars, bicycles costlier; TV sets cheaper
   Date :02-Feb-2023

Imported cars, bicycles  
MOBILE phones and TV sets manufactured in India would become cheaper with Finance Minister Nirmala Sitharaman announcing cuts in Basic Customs Duty (BCD) on import of their components but smokers would have to pay more as the Government has increased taxes. Imported cars, including electric vehicles, and those assembled in India with imported parts will also become costlier with increased Customs Duty.
Sitharaman in her Budget speech on Wednesday proposed an increase in BCD on several items to “promote exports, boost domestic manufacturing, enhance domestic value addition, encourage green energy and mobility”.
Customs Duty on vehicles in completely built units (CBUs) costing less than USD 40,000 or with engine capacity less than 3,000 cc for petrol-run vehicles and less than 2,500 cc for diesel-run vehicles has been raised from 60 per cent to 70 per cent, as per the Budget document. Similarly, Customs Duty on electrically operated vehicles in CBU form, other than with cost, insurance and freight (CIF) value of more than USD 40,000, has also been raised to 70 per cent from 60 per cent. Besides, BCD on import of bicycles is also being increased from 30 per cent to 35 per cent. BCD for toys and its parts is also hiked from 60 per cent to 70 per cent.
“The BCD is being increased on styrene, vinyl chloride monomer, toys and parts of toys (other than parts of electronic toys), bicycles, automobiles in SKD and CBU form, silver bar, silver dore and naphtha,” said Budget notification. The Government has also decided to increase Agriculture Infrastructure and Development Cess (AIDC) on silver bar from the existing 2.5 per cent to 5 per cent and 2.5 per cent to 4.35 per cent on silver dore. However, the Government has provided Customs Duty exemption to import of specified capital goods and machinery required for the manufacture of lithium-ion cells.