In the Budget 2025-26 presented by Union Finance Minister Nirmala Sitharaman, several important changes to basic customs duties (BCDs) were introduced. These changes are set to impact the prices of a variety of goods, making some more affordable while others may see an increase. Here's a breakdown of the key changes:
Relief for Healthcare and Medicines
One of the most significant updates in the Budget 2025 is the exemption of basic customs duties on 36 life-saving drugs. These medicines are primarily used in the treatment of cancer and chronic diseases, providing major relief to patients in need of essential medical care. Additionally, 37 other medicines will also be exempted from duties, further making healthcare more affordable for the public.
Reduced Customs Duty on Electronics and Smartphones
Consumers can expect lower prices for electronic goods, including smartphones, as the government has slashed customs duties on key components. The reduction in duties applies to open cells and other components used in electronics, which will make items such as televisions, mobile phones, and other gadgets cheaper. Moreover, 28 additional goods used in mobile phone batteries are now duty-free, helping bring down mobile phone prices.
In addition, essential accessories such as headphones, wired headsets, microphones, and USB cables will also benefit from reduced customs duties on raw materials, making them more affordable.
Boost for Electric Vehicles (EVs)
The EV sector received a major boost in Budget 2025 with customs duty exemptions on 35 additional goods required for manufacturing EV batteries. Duties on critical materials, such as cobalt powder and lithium-ion batteries, have also been removed. These changes are expected to lower the cost of EV production and make electric vehicles more accessible to consumers.
Benefits for Leather Industry and Shipbuilding
The leather industry is set to see a reduction in costs with the exemption of basic customs duties on wet blue leather. This will help make products like jackets, shoes, belts, and purses more affordable for consumers. Additionally, the shipbuilding sector will benefit from a 10-year extension of duty exemptions on raw materials used in shipbuilding.
Price Drops on Marine Products
In another positive change, the customs duty on fish pasteurii has been reduced from 30 per cent to 5 per cent. Similarly, the duty on fish hydrolysate, an important ingredient in aquatic feed production, has dropped from 15 per cent to 5 per cent, lowering the cost of these marine products.
Changes in TV Prices and Motorcycles
However, some products will become more expensive. The duty on flat-panel displays used in TVs has increased from 10 per cent to 20 per cent, which is expected to raise television prices. This change is part of the government's efforts to encourage domestic production of TV components and correct the inverted duty structure.
Motorcycles with an engine capacity of up to 1,600 cc will see a reduced customs duty from 50 per cent to 40 per cent, providing a slight relief to consumers.