Budget 2023 : Everything Which You Need to Know
Union Budget 2023-24 has present in the Indian Parliament by Finance Minister Nirmala Sitharaman on Wednesday, 1st February 2023. A day before the budget announcement, the finance minister table the Economic Survey 2022-23 in the Lok Sabha on 31st January 2023, giving a detail report on the expenditures and earnings of the country in the ongoing financial year.
TVs Made in India to Get Cheaper by Up to Rs. 3,000 After Tax Cuts on Imported Parts
Locally manufacture television sets will become cheaper by up to Rs 3,000 with finance minister Nirmala Sitharaman announcing a reduction in basic customs duty (BCD) on import parts to 2.5% from 5%.
The reduction of customs duty on parts of open cells will help to effectively reduce the price of TVs by around 5%, as per known about this topic.
Open cell panels account for over 60%-70%of the cost of manufacturing LED TV sets.
Most TV makers import these panels.
In her Budget speech, finance minister Nirmala Sitharaman said :
Super Plastronic, which has licences for international brands including Blaupunkt, Thomson, Kodak, and White-Westinghouse for the Indian market, said a reduction of customs duty to 2.5% will reduce the final price of the TV set by 5%.
Earlier, the government had in September 2019 scrap the duty on open cells for a year.
So it was reimpose a year later in 2020.
Videotex International, which owns Daiwa and Shinco brands and is also OEM/ODM Smart TV manufacturer for Realme, Toshiba, Lloyd, Compaq, BPL, Hyundai, and over 15 leading brands of India, said the reduction of duty is a “real game-changer moment” for the industry.
According to the latest Counterpoint Research report, India’s smart TV market record a 38% year-on-year growth in shipments during the July-September quarter.
Global brands led India’s smart TV segment with a 40% share, follow by Chinese brands with a 38% share.
And the Indian brands shows the fastest growth, doubling their share to 22% of the total smart TV shipments, the report said.
Fully Imported Cars, Including EVs, to Cost More After 10 Percent Customs Duty Hike
Fully import cars, including electric vehicles will cost more with Finance Minister Nirmala Sitharaman announcing hike in customs duty in the Union Budget 2023-24.
Customs duty on vehicles in completely built units (CBUs) costing less than $40,000 (approx. Rs. 32.7 lakh) or with engine capacity less than 3,000 cc for petrol-run vehicles and less than 2,500 cc for diesel-run vehicles has raise from 60% to 70%, as per the Budget document.
Same, customs duty on electrically operate vehicles in CBU form, other than with cost, insurance and freight (CIF) value of more than $40,000, has also raise to 70% from 60%.
The Budget also outline that customs duty on vehicles, including electric vehicles, in semi-Knocked down (SKD) form will rise to 35% from 30% earlier.
Already, cars import as CBUs with CIF more than $40,000 or with engine capacity more than 3,000 cc for petrol-run vehicles and more than 2,500 cc for diesel-run vehicles attract 100% customs duty.
The Government has propose to increase the duties on completely built units (CBUs) to 70% from 60% earlier.
Nirmala Sitharaman propose “to further provide impetus to green mobility, customs duty exemption is being extended to import of capital goods and machinery require for manufacture of lithium-ion cells for batteries used in electric vehicles.
As Nirmala Sitharaman also noted that replacing old polluting vehicles is an important part of “greening the country’s economy”.
Nirmala Sitharaman Said :
States will also be support in replacing old vehicles and ambulances, Nirmala Sitharaman said.
Government Lowers Customs Duty on Mobile Phone Parts, TVs
Finance Minister Nirmala Sitharaman announce a cut in customs duty on the import of certain inputs for mobile phone manufacturing.
In her Budget 2023-24 speech, Nirmala Sitharaman said India’s mobile phone output rose from 5.8 crore units in 2014-15 to 31 crore units last fiscal.
Nirmala Sitharaman announcement comes at a time when India has aggressively position itself as an electronics powerhouse to the world, as global players look for a China plus 1 strategy.
India has emerge as the world’s second-largest mobile phone manufacturer back by the Centre’s enabling policies, various incentive schemes, and a resolve to provide the industry with a competitive environment.
Nirmala Sitharaman also announce that customs duty on parts of open cells of TV panels would be cut to 2.5% and customs duty on kitchen electric chimney has increase to 15% from 7.5%.
She said the government would continue with a concessional basic customs duty of 2.5% on copper scrap.
Nirmala Sitharaman also announce a hike in basic customs duty on articles made from gold bars while increasing the tax on cigarettes by 16%.
The government would also reduce customs duty on shrimp feed to promote exports, Nirmala Sitharaman said.
Nirmala Sitharaman said the government proposes to increase the limit for presumptive taxation for MSMEs and certain professionals to Rs 3 crore and Rs 75 lakh, respectively.
‘As Expected’ there is No Mention of Crypto in India’s 2023 Budget Explain by Insiders
Nirmala Sitharaman skip to address the topic of cryptocurrencies all together as she read out the Union Budget for the fiscal year of 2023-2024.
Indians had pinning hopes for more clarity around crypto activities from this year’s Union Budget announcement. as per Industry insiders and did anticipate that the government could remain tight-lip about this next-gen fintech sector in the backdrop of an array of reasons.
India levied a 30% tax on all profits generate out of crypto trading and other relate activities in 2022.
As 1% TDS has also levied on each crypto transactions so that the government could manage to maintain a trail on these largely anonymous payments.
It has less than a year since these tax laws came into effect for the crypto sector in India, which is why no amendments to the existing regime or new rules around the sector were announce today.
In the last one year, Indian crypto traders as well as industry players have urge the finance ministry to consider lowering the impose taxes.
In December 2023, India’s industry body Bharat Web3 had call as the crypto tax ‘unfriendly’ that was hindering the growth of the sector.
Despite constant repetition, this outcry from the crypto space did not rattle the finance ministry’s sceptical approach towards the sector.
Nirmala Sitharaman’s tight-lip stance around the crypto industry did leave players rather disappoint.
After RBI’s firm resentment towards allowing the spread of the crypto culture, FM Sitharaman’s avoidance on the subject seems to have given a rise to the ‘no news is good news’ sentiment among crypto enthusiasts.
As there were a bunch of announcements that in the long run could help the crypto industry flourish once India finalises its regulatory framework.
FM Nirmala Sitharaman said India is going bullish on a tech-driven economy.
The country is also accelerating efforts to adopt and promote the production as well as usage of clean energy, which could elevate the position of India in the power-intensive crypto mining business.
Experts from the crypto industry have acknowledge the focus that India is laying on the overall digital transformation of the national finance sector.
Nirmala Sitharaman also did not mention any development around the launch of India’s Digital Rupee CBDC that is currently under trial runs in metro cities under RBI’s supervision.
Government to Introduce National Data Governance Policy for Simplified KYC Process : Nirmala Sitharaman
Government will bring a National Data Governance policy, which will simplify the KYC process while anonymising individual data, Finance Minister Nirmala Sitharaman said.
Presenting the Union Budget 2023-24, Nirmala Sitharaman said three centres of excellence for artificial intelligence would be set up in top educational institutions.
Government would also create Urban Infrastructure Development Fund on the lines of Rural Infrastructure Development Fund to be managed by NHB (National Housing Bank).
Nirmala Sitharaman also said to enhance ease of doing business, more than 39,000 compliances have reduce and over 3,400 legal provisions decriminalise.
During the Union Budget speech in the House, FM Nirmala Sitharaman announce 7 priorities of the Budget.
These 7 priorities are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.
Some of the important highlights announce include an agriculture accelerator fund that will be set up to help agriculture startups in the country and the government has announce to raise farm credit target to Rs. 20 lakh crore.
FM Nirmala Sitharaman also announce PM Vishwa Karma Kaushal Samman which will be a package of assistance for traditional artisans and craftsmen.
Government said it would improve quality, scale, and scale of its products, which will integrate these entrepreneurs with MSME value chain.