A Look at All That’s Costlier & Cheaper From Jaitley’s Budget

Here is a look at how Jaitley’s Budget will affect consumers in 2018-19.

With the the Lok Sabha elections slated to be held in 2019 – or even as early as 2018 end, Arun Jaitley’s final Union Budget on Thursday, 1 February, rode high on satisfying the country’s agrarian audience and rural population, while at the same time pitching for growth and employment in equal measure.

Here is a look at how Jaitley’s Budget will affect the consumers in 2018-19.

Mobile Phones and Other Gadgets to Become Dearer

Jaitley announced a hike in customs duty on mobile phones – from 15 percent to 20 percent – in a bid to boost domestic electronics manufacturing.

Announcing the hike, the Finance Minister said he was making a "calibrated departure" from the usual practice of reducing customs duty.

Customs duty on smart watches and wearables has been doubled to 20 percent, while specified parts and accessories of mobile phones have seen a hike of 15 percent from the current range of 7.5-10 percent.

LCD/LED TVs to Cost More

LCD/LED TV sets will become costlier after the government proposed to double the customs duty on imported panels to 15 percent from the existing 7.5 percent. Duty on LCD/LED/OLED TVs parts has also been increased to 15 percent.

"I propose to increase customs duty on mobile phones from 15 percent to 20 percent, on some of their parts and accessories to 15 percent, and on certain parts of TVs to 15 percent," Jaitley said in his Budget speech in Parliament.

There is substantial potential for domestic value addition in certain sectors, like food processing, electronics, auto components, footwear and furniture, he added.

"This measure will promote creation of more jobs in the country."

Now, Road Cess in Fuel

The Budget rejigged duties on petrol and diesel, by lowering the basic excise duty by Rs 2 and abolishing an additional excise duty of Rs 6. However, the government has introduced a new road cess of Rs 8 per litre.

The Budget, meanwhile, also proposed a petroleum subsidy of Rs 24,933 crore in FY19.

Making Yourself Smell Good Is Expensive

The customs duty on perfumes, dental hygiene, after-shave, deodorants, room deodorisers, hair products has been doubled to 20 percent.

Import duty on fruit juice has been raised from 30 percent to 50 percent.

Cashews are Cheaper Now, So Eat All You Can!

Meanwhile, Jaitley proposed to cut customs duty on raw cashew from 5 percent at present to 2.5 percent to give a boost to the cashew processing industry.

"To help the cashew processing industry, I propose to reduce customs duty on raw cashew from 5 percent to 2.5 per cent," the Finance Minister said.

(With inputs from PTI)