Budget 2023: What is getting cheaper and what is getting costlier this year

A range of products from cigarettes to electric kitchen chimneys, bicycles and toys, are set to become more expensive in the coming year, according to the Union Budget 2023 presented by Finance Minister Nirmala Sitharaman on Wednesday, February 1. On the other hand, customs duties on certain parts used in the manufacture of mobile phones and televisions have been reduced, to promote domestic value added in manufacturing these products, Nirmala said in her Budget speech. 

“I propose to reduce the number of basic customs duty rates on goods, other than textiles and agriculture, from 21 to 13. As a result, there are minor changes in the basic customs duties, cesses and surcharges on some items including toys, bicycles, automobiles and naphtha,” the Finance Minister said. Here’s a comprehensive list of what will get cheaper and more expensive in the financial year 2023-24: 

Items that will become cheaper: 

> Camera lens and other parts used in manufacturing mobile phones – relief in customs duty 

> Parts of open cells of TV panels – basic customs duty reduced to 2.5%

> Electric vehicles – customs duty exemption for capital goods and machinery used to manufacture lithium-ion cells for batteries used in EVs

> Seeds used to manufacture lab-made diamonds –  basic customs duty to be reduced

> Pecan nuts (customs duty down to 30% from 100%)

> Various items used in the manufacture of aquatic feed 

> Fluorspar 

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Items that will become more expensive: 

> Electric kitchen chimneys – basic customs duty up from 7.5% to 15% (however, customs duty on heat coils used in the chimneys to be reduced from 20% to 15%)

> Cigarettes – National Calamity Contingent Duty (NCCD) to be increased by 16%

> Articles of precious metals (such as silver, gold, platinum) - customs duty up from 20% to 25%

> Imitation jewellery - customs duty increased to 25% (from 20%) or Rs 600/kg (from Rs 400), whichever is higher

> Silver (including silver plated with gold or platinum) - customs duty increased from 7.5% to 10%

> Silver dorè – customs duty up from 6.1% to 10%

> Bicycles – customs duty up from 30% to 35%

> Toys and toy parts - customs duty up from 60% to 70%

> Vehicles in semi-knocked down form, including EVs - customs duty up from 30% to 35%

> Vehicle in Completely Built Unit (CBU) form, including electrically operated vehicle  - customs duty up from 60% to 70%

> Styrene, naphtha, vinyl chloride monomer, compounded rubber

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