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Things that will Get Cheaper and More Expensive for You - Thanks to Budget 2022

02 Feb 2022 0 COMMENT

Introduction

Finance Minister Nirmala Sitharaman made several announcements in the Union Budget 2022. While there was no concession made for the middle-class and salaried individuals, specific measures have made some goods such as clothes and mobile phones cheaper for individuals. Meanwhile, umbrellas and imported goods are set to become more expensive, as is fuel.

Here’s a breakdown of what gets cheaper and what gets more expensive for you after the Union Budget 2022:

Things That Get Cheaper

  1. Cut and polished diamonds: The customs duty on cut and polished diamonds and gemstones will now be 5% from the current 7.5%. Also, a simply sawn diamond will not have any customs duty. This will make diamond jewellery and gemstones cheaper for you. Moreover, by June, the government is looking to simplify the regulatory framework for exporting jewellery via e-commerce.
  1. Mobile phone parts: Some mobile phone parts such as the transformers of mobile phone chargers, camera lens and other parts will get duty concessions. This will make domestic manufacturing of mobile phones cheaper, translating to lower costs for homemade devices.
  2. Wearables and hearables: The customs duty for domestic wearable devices, hearing devices and certain electronic smart meters will be calibrated to make these items more affordable and cheaper to manufacture in the country.
  3. Steel scrap: Last year, MSME secondary steel producers were given customs duty exemptions on steel scrap. This has been extended by another year. Steel items will get cheaper on account of this.
  4. Certain chemicals: Some key chemicals such as methanol, acetic acid and heavy feed stocks for petroleum refining will attract lower customs duty, making them and their by-products cheaper.

Additional Read: Union Budget 2022 Speech

Things That Get More Expensive

  1. Umbrellas: Umbrellas will get more expensive for the average citizen as the customs duty has been hiked to 20%. Exemptions on certain parts of umbrellas that previously existed have also been withdrawn.
  2. Fuel: Unblended fuel is going to be charged an additional excise duty of Rs. 2 per litre starting from October 1, 2022. This will make petrol and diesel more expensive.

Additional Read: What to Expect From Budget 2022 for Individuals and Salaried People

Takeaway

The Union Budget 2022 is not a populist Budget that has provided many exemptions and cuts to taxpayers. However, the government has kept in mind key industries and introduced some concessions to make essential items cheaper for the public and small manufacturers.

Additional Read: How to explain the Budget to the youth

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