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<ul><li><keyword id="1731609" type="General" weightage="20" keywordseo="oppo" source="Orion">Oppo</keyword> has reportedly come under the scanner of the Directorate of Revenue Intelligence (DRI).</li><li>The DRI has detected customs duty evasion of ₹4,389 crore by Oppo.</li><li>The company has reportedly mis-declared the description of items imported by it.</li></ul>Oppo is the latest Chinese smartphone maker to come under the scanner of Indian agencies. The Directorate of Revenue Intelligence (DRI), the country’s apex anti-smuggling agency has detected customs duty evasion of around ₹4,389 crore. According to a <a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=1841150">release</a> by the Press Information Bureau, the DRI conducted a search operation at Oppo’s offices in the country and the residences of its key management, the agency recovered incriminating evidence that revealed willful misdeclaration in the description of items imported by the company. The items imported by Oppo were reportedly used for the manufacture of mobile phones in the country. The DRI has claimed that Oppo mis-declared the items to avail ineligible duty exemption benefits. It has claimed that the company availed an exemption of ₹2,981 crore. It looks like DRI has a strong case as the senior management of Oppo and domestic suppliers of the company have accepted the submission of wrongful descriptions to the Customs Authorities to evade payment of customs duty. <cmsannotation type="cmsannotation" annotationid="Oppo sent over ₹1,400 crore to China" comment="subhead" text="Oppo sent over ₹1,400 crore to China">Oppo sent over ₹1,400 crore to China</cmsannotation> Oppo reportedly also remitted a huge amount to China for payment of “Royalty” and “license fee”. The DRI has claimed that Oppo did not add the amount remitted to China in the transaction value of goods imported by them. This allowed the company to further evade customs duty of ₹1,408 crore, bringing the total amount of customs duty evasion to ₹4,389 crore. “After completion of the investigation, a Show Cause Notice has been issued to <keyword id="2034172" type="General" weightage="20" keywordseo="oppo-india" source="Orion">Oppo India</keyword> demanding Customs duty amounting to ₹4,389 crore. The said Notice also proposes relevant penalties on Oppo India, its employees and <keyword id="3513260" type="General" weightage="20" keywordseo="oppo-china" source="Orion">Oppo China</keyword>, under the provisions of the Customs Act, 1962”, the PIB release quoted DRI. <cmsannotation type="cmsannotation" annotationid="Oppo deposits ₹450 crore" comment="subhead" text="Oppo deposits ₹450 crore">Oppo deposits ₹450 crore</cmsannotation> Oppo has reportedly already deposited ₹450 crore as partial differential customs duty short. This means the Chinese smartphone maker will still have to pay ₹3,939 crore in customs duty. “We have a different view on the charges mentioned in the SCN. We believe it's an industry-wide issue many corporates are working on. OPPO India is reviewing the SCN received from DRI, and we are going to reply the notice, presenting our side, and will be working further with the related government departments. OPPO India is a responsible corporate and believes in prudent corporate governance framework. OPPO India will take appropriate steps as may be needed in this regard including any remedies provided under the law," Oppo said in a statement to Business Insider India. <cmsannotation type="cmsannotation" annotationid="Oppo joins Vivo, Xiaomi, and other Chinese smartphone makers" comment="subhead" text="Oppo joins Vivo, Xiaomi, and other Chinese smartphone makers">Oppo joins Vivo, Xiaomi, and other Chinese smartphone makers</cmsannotation> This comes at a time when other Chinese smartphone makers are already under the scanner of Indian agencies for tax evasion, money laundering and other violations. Oppo’s sister company Vivo recently came under the <a href="https://www.businessinsider.in/tech/enterprise/news/ed-has-reportedly-raided-44-locations-of-vivo-and-related-firms-across-the-country/articleshow/92672031.cms">scanner</a> of the Enforcement Directorate after the agency alleged that Vivo <a href="https://www.businessinsider.in/tech/enterprise/news/vivo-reportedly-transferred-nearly-8-billion-to-its-parent-company-in-china/articleshow/92726095.cms">remitted</a> ₹62,476 crore, which is around 50% of its revenue over a five-year period to its parent company in China to avoid paying taxes. The ED is also investigating Xiaomi over <a href="https://www.businessinsider.in/business/news/exclusive-84-of-the-5551-27-crore-seized-from-xiaomi-india-were-remitted-to-qualcomm-group/articleshow/91560593.cms">allegations</a> that the company remitted ₹5,551.27 illegally. Huawei also came under the scanner of the Income Tax department after the company <a href="https://www.businessinsider.in/tech/enterprise/news/chinese-smartphone-maker-huawei-comes-under-the-it-departments-scanner-over-tax-evasion/articleshow/92739828.cms">remitted</a> ₹750 crore as dividends to evade taxes. SEE ALSO: <a>Vivo's offices caught with 2 kilo gold bars after sending ₹62,000 crore back to China – all you need to know on the ED probe</a> <a>After Xiaomi, Vivo comes under the Enforcement Directorate’s scanner</a> <a href="https://www.businessinsider.in/tech/enterprise/news/vivo-reportedly-transferred-nearly-8-billion-to-its-parent-company-in-china/articleshow/92726095.cms">Vivo reportedly transferred nearly $8 billion to its parent company in China</a>

Oppo comes under DRI scanner for alleged customs duty evasion of ₹4,389 crore

<keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> Nirmala Sitharaman on Tuesday proposed reduction in basic <keyword id="20454068" type="General" weightage="20" keywordseo="customs-duty" source="keywords">customs duty</keyword> on <keyword id="19895579" type="General" weightage="20" keywordseo="gold" source="keywords">gold</keyword> and <keyword id="19934349" type="General" weightage="20" keywordseo="silver" source="keywords">silver</keyword> to 6 per cent and <keyword id="20163042" type="General" weightage="20" keywordseo="platinum" source="keywords">platinum</keyword> to 6.4 per cent. Presenting Budget for 2024-25, she also announced removal of basic customs duty on ferronickel, blister copper, while increasing the same to 15 per cent from 10 per cent on specified telecom equipment. The reduction in basic customs duty of gold, silver and platinum has been a long pending demand of the gems and jewellery industry. Sitharaman also proposed reduction in basic customs duty on certain brood stocks, shrimps and fish feed to 5 per cent. On the other hand, she said the government will raise customs duty on ammonium nitrate to 10 per cent and 25 per cent on non-biodegradable plastics. She also said e-commerce export hubs will be set up in PPP (public private partnership) mode to enable MSMEs sell their products. Traditional artisans will sell products in international markets, she said. She also proposed expanding the list of exempted capital goods used in manufacturing of solar cells and panels. SEE ALSO:<a href="https://www.businessinsider.in/budget/news/budget-2024-25-changes-to-tax-slabs-increased-standard-deduction-and-other-changes-to-direct-taxation/articleshow/111951205.cms" target="_blank"></a> <a href="https://www.businessinsider.in/budget/news/budget-2024-25-changes-to-tax-slabs-increased-standard-deduction-and-other-changes-to-direct-taxation/articleshow/111951205.cms" target="_blank">Budget 2024-25 – Changes to tax slabs, increased standard deduction and other changes to direct taxation</a> <a href="https://www.businessinsider.in/budget/news/union-budget-2024-live-updates-finance-minister-nirmala-sitharaman-key-announcements-23-july/liveblog/111942008.cms" target="_blank">Budget 2024 Live Updates: FM Sitharaman announces comprehensive review of the Income Tax Act 1961</a><a href="https://www.businessinsider.in/business/news/expectations-from-union-budget-2024-25-how-will-this-budget-impact-you/articleshow/111946291.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/news/expectations-from-union-budget-2024-25-how-will-this-budget-impact-you/articleshow/111946291.cms" target="_blank">Union Budget 2024-25: How will this budget impact you?</a>

Sitharaman announces cut in customs duty on gold, silver to 6%

Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> announced a reduction of 15 per cent in the <keyword id="19962888" type="General" weightage="20" keywordseo="Basic-Customs-Duty" source="keywords">Basic Customs Duty</keyword> (BCD) on <keyword id="20016418" type="General" weightage="20" keywordseo="Mobile-Phones" source="keywords">mobile phones</keyword> while presenting the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> for the fiscal year 2024-25 in Parliament on Tuesday. Along with mobile phones, the BCD on mobile Printed Circuit Board Assembly (PCBA), and mobile chargers will be lowered to 15 per cent. Sitharaman said, "With a threefold increase in domestic production and almost a 100-fold jump in exports of mobile phones over the last 6 years, the Indian mobile industry has matured. In the interest of consumers I now propose to reduce the Basic Customs Duty (BCD) on mobile phones, mobile Printed Circuit Board Assembly (PCBA) and mobile charger to 15 per cent." The reduction in BCD is expected to make mobile phones and related accessories more affordable for consumers. By lowering the cost of imported components and finished products, the government aims to pass on the benefits to end-users, potentially leading to reduced retail prices. This move is anticipated to stimulate demand and increase the accessibility of mobile technology across different segments of the population. For the domestic mobile phone industry, the reduced BCD is likely to enhance competitiveness and encourage further investments. Manufacturers can benefit from lower import costs for essential components, thereby improving their production efficiency and profit margins. According to the Worldwide Quarterly Mobile Phone Tracker by International Data Corporation, India's smartphone market shipped 34 million units in the first quarter of 2024. This represented a year-over-year growth of 11.5 per cent, marking the third consecutive quarter of increased shipments. Earlier, to bolster the Indian start-up eco-system, boost the entrepreneurial spirit and support innovation, Finance Minister Nirmala Sitharaman proposed to abolish the so-called angel tax for all classes of investors. This was a proposal from the industry for a long time, and this announcement will drive more investments towards startups in particular. Startups function as engines of economic growth, playing a crucial role in generating new jobs, ideas, products, and services. SEE ALSO:<a href="https://www.businessinsider.in/budget/news/budget-2024-25-changes-to-tax-slabs-increased-standard-deduction-and-other-changes-to-direct-taxation/articleshow/111951205.cms" target="_blank"></a> <a href="https://www.businessinsider.in/budget/news/budget-2024-25-changes-to-tax-slabs-increased-standard-deduction-and-other-changes-to-direct-taxation/articleshow/111951205.cms" target="_blank">Budget 2024-25 – Changes to tax slabs, increased standard deduction and other changes to direct taxation</a> <a href="https://www.businessinsider.in/budget/news/union-budget-2024-live-updates-finance-minister-nirmala-sitharaman-key-announcements-23-july/liveblog/111942008.cms" target="_blank">Budget 2024 Live Updates: FM Sitharaman announces comprehensive review of the Income Tax Act 1961</a><a href="https://www.businessinsider.in/business/news/expectations-from-union-budget-2024-25-how-will-this-budget-impact-you/articleshow/111946291.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/news/expectations-from-union-budget-2024-25-how-will-this-budget-impact-you/articleshow/111946291.cms" target="_blank">Union Budget 2024-25: How will this budget impact you?</a>

Union Budget 2024-25: Mobile Phones to get cheaper, as FM Nirmala Sitharaman reduces basic customs duty to 15%

The South Korean carmaker, <keyword id="596" type="CITY" weightage="80" keywordseo="Hyundai">Hyundai</keyword> Motor Company, took machines from one vendor to another without prior approval from authorities concerned and this landed the company with a tax bill of Rs 87 crore. 
 
As a result, the <a href="http://www.businessinsider.in/searchresult.cms?query=Department+of+Revenue+Intelligence+%28DRI%29+">Department of Revenue Intelligence (DRI)</a> has claimed duty dues of Rs 87 crore from the company for allegedly violating rules of the export promotion scheme. 
 The company’s plant in <keyword id="12864" type="COMPANY" weightage="40" keywordseo="Chennai">Chennai</keyword> can import machines at zero customs duty under the <a href="http://www.businessinsider.in/searchresult.cms?query=Export+Promotion+Capital+Goods+Scheme">Export Promotion Capital Goods Scheme</a>. In return, it needs to export cars worth six times the value of the duty saved within six years. 
 
The duty exemption is subject to conditions, including prior authorisation to move machines from one vendor to another. 
 
This year, Hyundai changed the vendor making door handles as it found the existing supplier was providing substandard products to the South Korean company. 
 
"In a month, Hyundai makes 50,000 cars at the <a href="http://www.businessinsider.in/searchresult.cms?query=Chennai+">Chennai</a> factory. If a machine breaks down in the middle of the night and if I had to get the necessary clearances before moving, Hyundai will take a production cut of 2,000 cars a day. The process of approval will take two months," said a Hyundai executive on condition of anonymity. 
 
The company moved machinery to the new vendor for dies and moulds before obtaining prior approval as that would mean a production ramp down or a total stop for over 60 days. 
 While Hyundai eventually obtained approval for the new vendor, inspectors from the <keyword id="6367970" type="ORGANIZATION" weightage="60" keywordseo="DRI">DRI</keyword> spotted the shift and issued a show-cause notice a few months ago. 
 
(Image: Indiatimes)

Hyundai in tax net! DRI claims duty dues of Rs 87 crore from the company

As the Indian economy pushes forward to grow at 9 per cent and above over the next few years, a key challenge for the country would be to rebalance its energy needs in favour of renewable sources by 2030 to 50 per cent as per the Paris agreement. This is where the <keyword id="44891" type="General" weightage="80" keywordseo="aluminium" source="Orion">Aluminium</keyword> sector will play a greater than ever before role. Extensive growth in electric vehicles, renewables, modern infrastructure, energy efficient consumer goods and greater dependence on strategic sectors such as aerospace and defence, will drive Aluminium consumption to grow at CAGR of 10 per cent or more. For example, Aluminium usage in EV battery is 40-50 per cent more than a normal ICE. Being 3 times lighter than steel it aids in fuel efficiency making it an efficient choice for EVs. However, the Indian aluminium industry is struggling to revive itself over the last two years following the unprecedented Covid pandemic. The declining domestic producers market share with surging imports coupled with significant cost escalation for primary producers due to a rise in input costs of critical raw materials, escalating ocean freights &amp; logistics costs due to container shortage, current coal crunch situation etc, is restricting the industry's ability to support the future of the country at a time when India cannot rely on import sources alone to fuel this growth. To give relief to the sector, there is a need for urgently looking at the duty structure. The basic custom duty on Aluminium and <keyword id="1865776" type="General" weightage="50" keywordseo="aluminium-scrap" source="Orion">Aluminium scrap</keyword> is not in line with other non-ferrous metals like Zink, lead, nickel and tin which is a huge disadvantage for domestic Aluminium producers. The industry expects increase in tariff rate of basic custom duty or peak custom duty rate from existing 10 per cent to 15 per cent. Currently custom duty on Primary Aluminium is 7.5 per cent, Downstream Aluminium is 7.5 per cent to 10 per cent and Aluminium <keyword id="6374716" type="General" weightage="100" keywordseo="scrap" source="Orion">scrap</keyword> is only 2.5 per cent. This is the reason why despite having significant presence of primary Aluminium capacity and potential to generate sufficient domestic scrap, India's consumption of scrap is 100 per cent import dependent. The way forward is to increase custom duty on Aluminium srap from 2.5 to 10 per cent. Primary aluminium industry is facing severe threat from the increasing import of Aluminium scrap. The share of scrap in total imports increased from 52 per cent in FY-16 to 66 per cent in FY-21. resulting in Forex Outgo of $2 billion (Rs 15,000 crore). What is also affecting the Indian industry is China's renewed measures to restrict Scrap imports through National Sword Policy, which is leading to greater inflow of scrap into India. China imposed 25 per cent duty on Aluminium Scrap imports from USA, and classified Aluminium Scrap in restricted import list from July, 2019, with plan to completely ban all scrap and waste imports. Post that the share of import from the US in China's total Aluminium scrap imports has declined from 53 per cent in 2017 to just 16 per cent in 2019. India has overtaken China as world's largest aluminium scrap importer due to Chinese measures. As a result, entire global scrap chain is shifted to India in absence of any quality or BIS standards for scrap recycling/ usage and imports in the country. A major threat is from US scrap imports, as US is diverting large volume of scrap to India, since EU and other developed countries have stringent standards for scrap. The import from US as share of India's total scrap imports increased from 8 per cent in FY16 to 24 per cent in FY21. This precarious situation can be resolved by safeguarding the domestic industry against these non-essential imports in the upcoming union budget. The industry demands increasing the basic custom duty on Chapter-76 (Aluminium &amp; articles). SEE ALSO: <a href="https://www.businessinsider.in/budget/news/budget-2022-expectation-in-higher-standard-deduction-tax-slabs-and-covid-insurance/slidelist/88891751.cms">From higher standard deduction and change in tax slabs to clarity on Covid insurance, here’s what tax experts want from Budget 2022</a> <a href="https://www.businessinsider.in/budget/news/widening-tax-base-should-be-a-focus-area-in-the-union-budget-says-primus-research/articleshow/89093457.cms">Widening tax base should be a focus area in the Union Budget, says Primus Research</a>

Aluminum industry wants custom duty on scrap to be increased to 10% to protect domestic companies

The government on Wednesday announced increasing the basic <keyword id="15308238" type="TOPIC" weightage="60" keywordseo="Customs-Duty" source="TOPIC" sourcekeytype="budget,investopedia" meta.keywordsubtype="null" meta.seopath="c/customs-duty" meta.entityname="Customs Duty" meta.hostid="153" meta.entityid="customs-duty">customs duty</keyword> on silver, both in dore and semi-manufactured form, to 10 per cent in order to curb imports. Currently, the basic customs duty on silver dore is 6.1 per cent, while on silver unwrought or semi-manufactured items it is 7.5 per cent. In her <keyword id="6358021" type="General" weightage="80" keywordseo="budget" source="Orion">Budget</keyword> speech for 2023-24 fiscal, <keyword id="15311950" type="TOPIC" weightage="60" keywordseo="Finance" source="TOPIC" sourcekeytype="finance,investopedia" meta.keywordsubtype="null" meta.msid="92571693" meta.seopath="f/finance" meta.entityname="Finance" meta.hostid="153" meta.entityid="finance">finance</keyword> minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> said customs duties on dore and <keyword id="15402340" type="TOPIC" weightage="60" keywordseo="BARS" source="TOPIC" sourcekeytype="human-resource,investopedia" meta.keywordsubtype="null" meta.seopath="b/bars" meta.entityname="BARS" meta.hostid="153" meta.entityid="bars">bars</keyword> of gold and platinum were increased earlier this fiscal. "I now propose to increase the duties on articles made therefrom to enhance the duty differential. I also propose to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum," she said. The basic customs duty on both silver dore and semi-manufactured items will be increased to 10 per cent, as per the <keyword id="2393482" type="General" weightage="20" keywordseo="budget-document" source="Orion">Budget document</keyword>. Commenting on the announcement, Founder and Managing Director of <keyword id="15722229" type="General" weightage="50" keywordseo="kama-jewelry" source="Orion">Kama Jewelry</keyword> <keyword id="1800107" type="General" weightage="50" keywordseo="colin-shah" source="Orion">Colin Shah</keyword> said that the hike in basic customs duty on articles made from gold bars and import duty on silver will lead to a rise in the final price of locally made jewellery and maybe challenge for local refineries. He is also the former chairman of the Gem and Jewellery Export Promotion Council. To encourage lab-grown diamonds, the government has scrapped the basic customs duty from the current 5 per cent. Currently, <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword> is the world's third-largest silver physical investment market after the US and <keyword id="87" type="General" weightage="20" keywordseo="germany" source="Orion">Germany</keyword>. The country's silver imports touched a record high of 8,000 tonnes in 2022 on rise in jewellery consumption, as per the market data. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/tata-motors-total-vehicle-sales-rise-to-81069-units-in-january/articleshow/97524277.cms">Tata Motors total vehicle sales rise to 81,069 units in January</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/personal-finance/news/zero-tax-on-income-upto-rs-7-lakh-under-the-new-tax-regime/articleshow/97524028.cms">FM plays Santa: Zero tax on income upto ₹7 lakh under the new regime</a>

Govt announces hike in basic customs duty on silver to 10% to check imports

New Delhi, Feb 1 () Finance Minister Nirmala Sitharaman on Saturday announced increasing customs duty on imported footwear and furniture.
 In her second Budget presentation, the finance minister also imposed health cess on import of medical equipment.
 Sitharaman cut short her Budget speech after feeling unwell towards the fag end. TEAM MBI RKL ANZ RKL ANS
ANS

Customs duty on imported footwear, furniture hiked

New Delhi, Feb 1 () The government on Saturday said by September it will comprehensively review customs duty exemptions being given to certain products to weigh their relevance. 
Finance Minister Nirmala Sitharaman while presenting the Budget for 2020-21 said exemptions from customs duty have been given in public interest from time to time. 
However, a number of these have outlived their utility or have become outdated, she said adding on review, certain such exemptions are being withdrawn. 
"Remaining customs duty exemptions shall be comprehensively reviewed by September 2020 for taking a view on their relevance. I propose to crowd source suggestions for such reviews," she said. 
The minister said suggestions would also be invited on customs laws and procedures for aligning those with the needs of changing times and ease of doing business.
Further, she said the government is strengthening provisions relating to safeguard duties which are applied when surge in imports causes serious injury to domestic industry. 
"The provisions for checking dumping of goods and imports of subsidized goods are also being strengthened for ensuring a level playing field for domestic industry," Sitharaman said. 
She added that these changes are in line with the international best practices. 
 RR ANU
ANU

Govt to review customs duty exemption by Sep

In order to protect the domestic steel industry, which is facing tough times, the <keyword id="109322" type="ORGANIZATION" weightage="100" keywordseo="steel-ministry">Steel Ministry</keyword> of India has pitched for addressing the inverted duty structure in the upcoming Budget. Not only this, they have also asked the Finance Ministry to raise the peak duty rate by 10%, which means that they want the present 15% duty to be raised to 25%. 
 
Finance Minister Arun Jaitley will present the Union Budget for the 2016-17 fiscal in Parliament on 29th February. 
 
If this proposal is accepted, it will be the second consecutive increase in the peak rate in two budget sessions, as the last budget had raised the peak customs duty from 10 to 15%. 
 
Earlier this month, the government had done a small bit to protect the steel industry when it had imposed a minimum import price (MIP) on 173 steel products ranging between USD 341 to USD 752 per tonne. 
 
Besides this, the government had also imposed provisional Safeguard Duty in July 2015 and had increased import duty on certain steel products to keep a check on steel imports. 
 
<a href="http://economictimes.indiatimes.com/photo/47175355.cms">Image source</a>

Budget 2016: Steel Ministry demands another rise in peek customs duty

One aspect that always garners much traction on the <keyword id="19936553" type="General" weightage="100" keywordseo="Budget" source="keywords">Budget</keyword> day is what got <keyword id="20257498" type="General" weightage="20" keywordseo="cheaper" source="keywords">cheaper</keyword> and what got <keyword id="20286063" type="General" weightage="20" keywordseo="costlier" source="keywords">costlier</keyword>. Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> as part of her Budget presentation proposed a host of tweaks in basic <keyword id="20454068" type="General" weightage="20" keywordseo="customs-duty" source="keywords">customs duty</keyword> (BCD) for various products or items that are critical for manufacturing. In her Budget speech, Sitharaman proposed an exemption on customs duty on certain <keyword id="22516435" type="General" weightage="20" keywordseo="cancer-medicines" source="keywords">cancer medicines</keyword> and a reduction in duties on <keyword id="19920958" type="General" weightage="20" keywordseo="mobile-phone" source="keywords">mobile phone</keyword> parts and chargers, aimed at bringing down their prices in the retail market. "With a three-fold increase in domestic production and almost 100-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured. In the interest of consumers, I now propose to reduce the BCD on mobile phone, mobile PCBA and mobile charger to 15 per cent," said Sitharaman in her Budget speech that lasted around 90 minutes. To provide relief to cancer patients, she proposed to fully exempt three more medicines from customs duties. Imported <keyword id="19895579" type="General" weightage="20" keywordseo="gold" source="keywords">gold</keyword>, silver, leather goods and seafood will also get cheaper, as duties were invariably lowered on them. Duty cut on gold would boost retail demand and help in curtailing smuggling in the world's second-biggest bullion market. "To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent." She also proposed changes in the customs duty on X-ray tubes and flat panel detectors for use in medical X-ray machines under the <keyword id="20330318" type="General" weightage="20" keywordseo="phased-manufacturing-programme" source="keywords">Phased Manufacturing Programme</keyword>, so as to synchronise them with domestic capacity addition. Also, she proposed to fully exempt customs duties on 25 critical minerals and reduce basic customs duty on two of them. Minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics, said the finance minister. "This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors," Sitharaman said. Putting energy transition on focus, as it is critical in the fight against climate change, the finance minister proposed to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. However, in view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, it was proposed not to extend the exemption of customs duties provided to them. To enhance competitiveness in marine products, the reduced duty on certain broodstock, polychaete worms, shrimp and fish feed to 5 per cent, besides exempting customs duty on various inputs for manufacture of shrimp and fish feed. Moving on to leather and textile, reduction in duty was announced for various items. "...to enhance the competitiveness of exports in the leather and textile sectors, I propose to reduce BCD on real down filling material from duck or goose," Sitharaman said. To reduce cost of production of steel and copper, two important raw materials, it was proposed to remove the customs duty on ferro nickel and blister copper. "I am also continuing with nil BCD (customs duty) on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap." On the flip side, to support chemicals and petrochemicals, an increase in duty was proposed. To support existing and new capacities in the pipeline, an increase in duty on ammonium nitrate from 7.5 to 10 per cent would be applicable. PVC flex banners are non-biodegradable and hazardous for environment and health. To curb their imports, a propose was made to raise the duty on them from 10 to 25 per cent. To incentivise domestic telecommunication equipment manufacturing, a propose to increase the duty from 10 to 15 per cent on PCBA (printed circuit board assembly) of specified telecom equipment was made. Explaining her rational behind the indirect taxes tweak, Sitharaman said her proposals for customs duties intend to support domestic manufacturing, deepen local value addition, promote export competitiveness, and simplify taxation, while keeping the interest of the general public and consumers surmount. In Budget 2022-23 too, the government reduced the number of customs duty rates.

Here's what will get cheaper and costlier after this Budget

Finance Minister Nirmala Sitharaman on Tuesday announced a cut in customs duty on minerals such as lithium, copper and cobalt, which are critical for nuclear energy, renewable and other sectors, to give a fillip to the energy transition. In her budget speech in Lok Sabha, Sitharaman recalled that in the interim budget she had announced a strategy to sustain high and more resource-efficient economic growth, along with energy security in terms of availability, accessibility and affordability. "We will bring out a policy document on appropriate energy transition pathways that balances the imperatives of employment, growth and environmental sustainability," she said. Noting that minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, <keyword id="19895602" type="General" weightage="20" keywordseo="renewable-energy" source="keywords">renewable energy</keyword>, space, defence, telecommunications, and high-tech electronics, she proposed to fully exempt customs duties on 25 critical minerals and reduce BCD (basic customs duty) on two of them. This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors, she said. She stated that energy transition is critical in the fight against climate change. To support energy transition, she proposed to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. Further, she stated that in view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, I propose not to extend the exemption of customs duties provided to them. Noting that steel and copper are important raw materials and to reduce their cost of production, she proposed to remove the BCD on ferro nickel and blister copper. "I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap," she said. About the PM Surya Ghar Muft Bijli Yojana, which was rolled out earlier this year, he informed the House that in line with the announcement in the interim budget, PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month. The scheme has generated remarkable response with more than 1.28 crore registrations and 14 lakh applications, and we will further encourage it, he stated. She further stated that a policy for promoting pumped storage projects will be brought out for electricity storage and facilitating smooth integration of the growing share of renewable energy with its variable &amp; intermittent nature in the overall energy mix. She stated that nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat. Towards that pursuit, our government will partner with the private sector for setting up Bharat Small Reactors; research &amp; development of Bharat Small Modular Reactor and research &amp; development of newer technologies for nuclear energy, she informed the House. The R&amp;D funding announced in the interim budget will be made available for this sector, she added. The development of indigenous technology for Advanced Ultra Super Critical (AUSC) <keyword id="20421620" type="General" weightage="20" keywordseo="thermal-power" source="keywords">thermal power</keyword> plants with much higher efficiency has been completed, she informed the House. A joint venture between NTPC and BHEL will set up a full-scale 800 MW commercial plant using AUSC technology and the government will provide the required fiscal support, she added. Moving forward, the development of indigenous capacity for the production of high-grade steel and other advanced metallurgy materials for these plants will result in strong spin-off benefits for the economy, she pointed out. A roadmap for moving the 'hard to abate' industries from 'energy efficiency' targets to 'emission targets' will be formulated, she stated adding that appropriate regulations for the transition of these industries from the current 'Perform, Achieve and Trade' mode to 'Indian Carbon Market' mode will be put in place. She further stated that an investment-grade energy audit of traditional micro and small industries in 60 clusters, including brass and ceramic, will be facilitated. Financial support will be provided for shifting them to cleaner forms of energy and implementation of energy efficiency measures. The scheme will be replicated in another 100 clusters in the next phase, she stated. Gaurav Kedia, Chairman, Indian Biogas Association said that the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> 2024 has unveiled a roadmap towards a sustainable and resilient India, with agriculture and energy security at its core. It is anticipated that these initiatives will catalyze the growth of the biogas industry, leading to increased rural employment, reduced carbon emissions, and improved soil health, he stated. SEE ALSO:<a href="https://www.businessinsider.in/budget/news/budget-2024-25-changes-to-tax-slabs-increased-standard-deduction-and-other-changes-to-direct-taxation/articleshow/111951205.cms" target="_blank"></a> <a href="https://www.businessinsider.in/budget/news/budget-2024-25-changes-to-tax-slabs-increased-standard-deduction-and-other-changes-to-direct-taxation/articleshow/111951205.cms" target="_blank">Budget 2024-25 – Changes to tax slabs, increased standard deduction and other changes to direct taxation</a><a href="https://www.businessinsider.in/business/news/expectations-from-union-budget-2024-25-how-will-this-budget-impact-you/articleshow/111946291.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/news/expectations-from-union-budget-2024-25-how-will-this-budget-impact-you/articleshow/111946291.cms" target="_blank">Union Budget 2024-25: How will this budget impact you?</a> <a href="https://www.businessinsider.in/budget/news/budget-2024-record-allocation-of-rs-1-48-lakh-crore-for-education-employment-and-skilling/articleshow/111951228.cms">Budget 2024: Record allocation of Rs 1.48 lakh crore for education, employment and skilling!</a>

FM cuts customs duty on minerals critical for energy transition

New Delhi, Feb 1 () Imported electric vehicles are set to become costlier as Finance Minister Nirmala Sitharaman on Saturday announced an increase in customs duty on various kinds of such vehicles as the government pushes to promote local production.
 "Under 'Make in India' initiative, well laid-out customs duty rates were pre-announced for items like mobile phones, electric vehicles and their components. This has ensured gradual increase in domestic value addition capacity in India," Sitharaman said while presenting Budget 2020-21.
 Customs duty rates are being revised on electric vehicles (EVs), and parts of mobiles as part of such carefully conceived phased manufacturing plans, she added.
 To push local manufacturing in the EV segment, the government has increased customs duty on imported completely built units (CBUs) of commercial EVs to 40 per cent with effect from April 1, 2020, from 25 per cent currently.
 The finance minister also proposed to enhance customs duty on semi knocked-down (SKD) forms of passenger EVs from 15 per cent to 30 per cent.
 Similarly, the government has proposed to hike customs duty on SKD forms of electric buses, trucks and two-wheelers to 25 per cent from 15 per cent currently, with effect from April 1, 2020.
 Besides, the customs duty on completely knocked-down (CKD) forms of passenger EVs, three-wheelers, two-wheelers, bus and trucks has been proposed to go up to 15 per cent from the current 10 per cent.
 With the government pushing for green mobility, various car makers have launched EVs in the country in the past few years. Besides, Tata Motors, Mahindra &amp; Mahindra, Hyundai Motor and MG Motor India have also introduced electric models.
 Similarly, companies like Mercedes-Benz, Audi and JLR are also gearing up to introduce electric models in the country. With enhanced customs duty on SKD forms, such vehicles are expected to cost more.
 Sitharaman also proposed to increase customs duty on CBUs of traditional commercial vehicles from 30 per cent to 40 per cent.
 The government also proposed to increase customs duty from 5 per cent to 7.5 per cent on parts used to manufacture catalytic converters. MSS RKL HRS

FM proposes to hike customs duty on imported electric vehicles

The <keyword id="19915423" type="General" weightage="20" keywordseo="Indian-Chamber-of-Commerce" source="keywords" meta.keywordsubtype="org" meta.entityname="Indian Chamber of Commerce" meta.hostid="153" meta.entityid="Indian Chamber of Commerce">Indian Chamber of Commerce</keyword> (ICC) has suggested the government to rationalise <keyword id="6360806" type="General" weightage="20" keywordseo="customs" source="Orion">customs</keyword> duties in various sectors including steel, solar battery, aluminum, and lithium cells in a bid to boost <keyword id="20053977" type="General" weightage="20" keywordseo="domestic-manufacturing" source="keywords">domestic manufacturing</keyword>. Finance Minister Nirmala Sitharaman is scheduled to present the <keyword id="6360189" type="General" weightage="20" keywordseo="union-budget" source="Orion">Union Budget</keyword> for financial year 2024-25 on July 23. ICC President Ameya Prabhu said protective measures are needed for the growth of domestic industry in sectors including steel, solar battery, aluminum, and lithium cells. "There is a need for rationalisation of <keyword id="20454068" type="General" weightage="20" keywordseo="customs-duty" source="keywords">customs duty</keyword> in these specific sectors in a holistic manner. Huge potential is there to boost domestic manufacturing and make India a global hub for manufacturing," Prabhu said. He added that levies on raw materials impact domestic players particularly the downstream firms. He also asked for correction in inverted duty structure by cutting down duty on mixed petroleum gas from 5 per cent to 2.5 per cent. "To boost domestic manufacturing, there is a need to increase duty on polymers - polyvinyl chloride, polyethylene terephthalate, polypropylene and polyesters to 10 per cent. This will help in reducing import dependency and will drive India towards self-sufficiency in the petrochemical manufacturing segment," Prabhu said. Talking about the importance of the aluminium foil sector, the President said the domestic industry has been facing severe losses as there is anti-dumping duty on raw materials whereas the finished goods are not subject to any duties on imports from China. "This dual effect has resulted in extensive net losses to the companies that have made significant investments into this industry," Prabhu noted. On the taxation side, the chamber has suggested setting up a commission to review the Income Tax Act 1961 in its entirety and simplify the provisions. "This is an old Act. Every year in the <keyword id="6358021" type="General" weightage="20" keywordseo="budget" source="Orion">Budget</keyword>, amendments are made which has made this Act complex to understand. These amendments have resulted in many anomalies which in turn have given rise to a large number of legal cases," the chamber has said. Prabhu further recommended the government not to impose tax on dividends. He added that during his tenure so far the ICC has spread its wings further nationally and internationally and become a truly world-class chamber. "We have opened 25 chapters globally in countries including New Zealand, the US, Europe, Australia, Korea and Middle East nations," he said.

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