Custom Duty in Budget 2021: Union Finance Minister Nirmala Sitharaman presented the General Budget for the next financial year 2021-22 on 1 February today. In this budget, he made announcements related to custom duty which have a direct impact on the common man. Has announced to increase the custom duty on mobile phone equipment and chargers to 2.5 percent. Apart from this, it has been recommended to reduce the custom duty from 12.5 per cent to 10 per cent for expensive metals like gold and silver.
Changes in custom duty cause fluctuations in the price of things. The items on which the custom duty is increased, they become expensive and for those whose duty is reduced, their prices are reduced. For example, according to the budget announcement by the Finance Minister, buying mobile phones will become expensive and buying expensive metals like gold and silver will become cheaper. Apart from this, farmers will benefit from increasing the custom duty of cotton.
Changes in custom duty rates
1. Changes in basic customs to give the opportunity to Barabir for the benefit of farmers, MSMEs and other domestic manufacturers (applicable from 2 February 2021). In this, an additional 5% agriculture infrastructure and development cess will be imposed on cotton.
2. Changes in custom duty to promote value addition in the electronic sector (effective from 2 February 2021) (serial numbers 1 and 4 will come into force from 1 April 2021)
3. Duty was cut on some items to reduce input costs. However, an additional 2.5 percent Agriculture Infrastructure and Development Cess will be levied.
4. The budget revises the customs duty on some alcoholic beverages to 50 per cent, 15 per cent on apple, 15 per cent on crude edible oil (palm, soybean, sunflower), 0 per cent on specialized fertilizer (urea, mop, DOP), 2.5 on ammonium nitrate. In addition to the percentage, the custom duty on peas, kabuli gram, Bengal gram and lentils was revised to 10 percent. Agricultural infrastructure and development cess will also be imposed on them.
Agricultural Infrastructure and Development Cess
- This time in the budget, the Finance Minister has proposed a proposal for Agriculture Infrastructure and Development Cess (Cess). A cess of 2.5 per cent has been proposed on gold and silver. A list of specialized items is given below and how much cess will be levied on them.
- Agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per liter of petrol and Rs 4 on diesel has been proposed.