NEW DELHI – A large number of items including cigarettes, chewing tobacco along with imported products, like edible oils, fans, table, footwear, electric vehicles, tableware, kitchenware, toys and furniture are set to become more expensive due to hike in taxes proposed in the Union Budget for 2020-21.
On the other hand, newsprint, sports goods, microphone will become cheaper as Finance Minister Nirmala Sitharaman proposed reduction in duties on these items in the Budget for 2020-21.
Following is a list of imported items that will become costlier:
* Butter ghee, butter oil, edible oils, peanut butter
* Whey, meslin, maize, sugar beet seeds, preserved potato
* Chewing gum, dietary soya fibre, isolated soya protein
* Walnuts (shelled)
* Footwear, shavers, hair clippers, hair-removing appliances
* Tableware, kitchenware, water filters, glassware
* Household articles of porcelain or china
* Rubies, emeralds, sapphires, rough coloured gemstones
* Padlocks
* Hand sieves and hand riddles
* Combs, hairpins, curling pins, curling grips, hair curlers
* Table fans, ceiling fans and pedestal fans
* Portable blowers
* Water heaters and immersion heaters
* Hair dryers, hand drying apparatus and electric irons
* Food grinders, ovens, cookers, cooking plates, boiling rings, grillers and roasters
* Coffee and tea makers and toasters
* Electro-thermic fluid heaters, devices for repelling insects and electric heating resistors
* Furniture, lamps and lighting fittings
* Toys, stationery item, artificial flowers, bells, gongs, statuettes, trophies
* Printed Circuit Board Assembly (PCBA) of cellular mobile phones, display panel and touch assembly, fingerprint readers for use in cellular mobile phones
*The government has proposed to hike the Excise duty on cigarettes, Hookah, Chewing tobacco, Jarda scented tobacco and Tobacco extracts and essence.
The government has proposed to reduce the custom duty on the import of the following item
* Pure-bred breeding horses
* Newsprint
* Sports goods
* Microphone
* Electric vehicles
Budget Cuts Personal Income Tax, Raises Customs Duty
Finance Minister Nirmala Sitharaman on Saturday announced cuts in personal income tax, extended tax benefits for affordable housing and gave relief to companies on payment of dividend in the Union Budget for 2020-21 as the government looked to boost consumption to bring the economy out of the worst slowdown in 11 years
The minister proposed raising customs duty on a variety of products ranging from tableware and kitchenware, electrical appliances to footwear, furniture, stationery and toys to give a level playing field to domestic companies and boost Make in India
Offering an optional lower rate of income tax to individuals, Sitharaman in her Budget for 2020-21 proposed new tax slabs of 15 per cent and 25 per cent in addition to the existing 10 per cent, 20 per cent and 30 per cent. The new I-T slabs would be for individuals not availing certain specified deductions or exemptions
Under the proposed I-T slab, annual income upto Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax
Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent
Those earning between Rs 10 and 12.5 lakh will pay tax at the rate of 20 per cent, while those between Rs 12.5 and Rs 15 lakh will pay at the rate of 25 per cent. Income above Rs 15 lakh will be taxed at 30 per cent
Individuals opting for taxation under new rates will not be entitled to exemption/deductions including under Section 80C and 80D, LTC, housing rent allowance, deduction for entertainment allowance, professional tax, and interest on self occupied/vacant property
Currently, annual income upto Rs 2.5 lakh is exempt from I-T. While a 5 per cent tax is charged for income between Rs 2.5 and 5 lakh. 20 per cent for income between Rs 5 lakh and Rs 10 lakh and 30 per cent for those earning above Rs 10 lakh
“The new tax regime shall be optional for tax payers,” she said
“The proposed tax structure will provide significant relief to taxpayers and more so to those in the middle class,” Sitharaman added
To boost growth, Sitharaman announced higher spendings on infrastructure, rural development and agri sector
The Finance Minister said the government is proposing a 16-point action plan to boost agriculture and farmers welfare
Agricultural services need copious investments, she said, adding government has insured 6.11 crore farmers under the Pradhan Mantri Fasal Bima Yojna
With her post 2019-20 Budget corporate tax cut drilling a Rs 1.45 lakh crore hole in government revenues, the minister hiked the fiscal deficit target for current fiscal to 3.8 per cent of GDP, from 3.3 per cent
For 2020-21, she pegged the fiscal deficit at 3.5 per cent
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