The Union Finance Minister, Nirmala Sitharaman, presented the full Union Budget for 2024 today before the parliament at 11 am. It was the first budget of the Modi 3.0 government, after the recent parliament elections. It is vital to note that the Union Budget has increased the time period for the export of the goods imported for repair works have been extended to one year from the previous lower limit of 6 months.
The FM has announced in the union budget that the export of goods that have been imported for the processing of repairs has been extended to a period of one year, providing sufficient time for the repair work. Re-exporting can be defined as returning imported items for specified purposes, such as jobbing, contract execution, machine repair, or fair/exhibition displays. There are also situations or cases where indigenously manufactured goods are returned after export and re-imported for repair or reprocessing due to defects or failure to fulfill customer specifications. So now, according to the latest budget, a special consideration has been provided, and thus the time limit has been extended to one year.
Various other Custom Duty reforms have been introduced in the finance bill, which aims to ease of doing business. And they include the basic customs duty (BCD) levied on certain electronic items that have been abolished or removed. And the BCD on mobile phones has been reduced. With an aim to strengthen the fisheries, the finance minister has proposed to reduce customs duty on fish feeds, which is beneficial to entities carrying on aquarium activities, firms selling pet foods, etc.
The customs duty has also been reduced on marine products and selected fish products, which will again bring a major boost to the sector connected with the fisheries. To promote sustainable development, the customs duty levied on solar sets and panels has been significantly reduced. In order to strengthen the textile industry, the customs duty on leather products and textiles has been reduced. The FM has announced the removal of customs duty on 25 critical minerals such as cobalt, copper, lithium, etc. The customs duty on medical types of equipment has been reduced to provide better medical services to the public.
Thus by reducing and removing customs duty on several commodities and giving them special consideration, the union budget aims to promote the ease of doing business.
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