Budget 2019: Custom Duty is increased and reduced on Items in the Budget 2019

Budget 2019: Custom Duty is increased and reduced on Items in the Budget 2019

Budget 2019: Customs Duty is increased and reduced on Items in the Budget 2019

The Finance Minister Nirmala Sitharaman had made her maiden budget of the Modi 2.0 Government in the Lok Sabha on July 5, 2019, in the Parliament.

The list of items which is going to be cheaper and which is going to be expensive

The price increased for the items like:-

Petrol and diesel: The price of petrol and diesel would soon go up by Rs.2 per liter as the finance ministry has decided towards imposing a special additional excise duty and cess on the two fuels in the Union Budget 2019.

Gold, silver other precious metals: Nirmala Sitharaman had proposed to increase customs duty on gold as well as other precious metals from 10% to 12.5%.

  • Fully-Imported Cars.

  • Split Acs.

  • Loudspeakers.

  • Digital Video Recorders.

  • Imported Books.

  • CCTV Cameras.

  • Cashew Kernels.

  • Imported Plastics.

  • Soap.

  • Imported Auto Parts.

  • Vinyl Flooring.

  • Stainless Steel Products.

  • PVC.

  • Tiles.

  • Metal Fittings.

  • Mountings For Furniture.

  • Auto Parts.

  • Certain Kinds Of Synthetic Rubbers.

  • Marble Slabs.

  • Optical Fibre Cable.

  • IP Camera.

  • Digital And.

  • Network Video Recorders.

The list of 36 items in which the customs duties have been enhanced is:-

  • Cashew Kernels.

  • Fatty acids. Acid oils from refining used in the manufacture of oleochemicals and soaps.

  • Poly Vinyl Chloride.

  • Floor cover of plastics, Wall or ceiling coverings of plastics.

  • Articles of plastic.

  • Butyl Rubber.

  • Chlorobutyl rubber or bromobutyl rubber.

  • Paper for newsprint and magazines.

  • Printed books (which includes covers for printed books) and printed manuals.

  • Water blocking tapes for the manufacture of optical fiber cables.

  • Ceramic roofing tiles and ceramic flags and pavings, hearth or wall tiles, etc.

  • Stainless steel products.

  • Wire of other alloy steel (other than INVAR).

  • Base metal fittings, mountings and similar articles suitable for furniture, doors, staircases, windows, blinds, hinge for automobiles.

  • The indoor and outdoor unit of split –system air conditioner.

  • Stone crushing (cone type) plants for the construction of roads.

  • Charger/ power adapter of CCTV camera/ IP camera and DVR / NVR.

  • Loudspeaker.

  • Digital Video Recorder and Network Video Recorder.

  • CCTV camera and IP camera.

  • Optical Fibres, optical fiber bundles, and cables.

  • Friction material and articles like sheets, rolls, strips, segments, discs, washers, pads, not mounted, for brakes, for clutches or the like, with a basis of asbestos, or other mineral substances or of cellulose, whether or not combined with textile or other materials.

  • Glass mirrors, which also includes rear-view mirrors.

  • Locks used in motor vehicles.

  • Catalytic Converter.

  • Oil or petrol filters for internal combustion engines.

  • Intake air filters for internal combustion engines.

  • Lighting or visual signaling equipment of a kind used in bicycles or motor vehicles.

  • Horns for the vehicle.

  • Other visual or sound signaling equipment for bicycle and motor vehicle.

  • Visual or sound signaling equipment parts, windscreen wipers, defrosters, and demisters of a kind used in cycles or motor vehicles.

  • Windscreen wipers, defrosters, and demisters, Sealed beam lamp units, Other lamps for automobiles.

  • Completely Built Unit (CBU)of vehicles falling under heading 8702, 8704.

  • Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705.

  • Bodies (comprising cabs), for the motor vehicles of headings 8701 to 8705.

The price reduced for the items like:-

  • Set-top box.

  • Electric vehicle components.

  • Camera module.

  • Mobile phone chargers.


To promote domestic manufacturing, the budget 2019 has reduced customs duty on certain raw materials and capital goods. These consist of certain inputs of CRGO sheets, amorphous alloy ribbon, ethylene dichloride, propylene oxide, cobalt matte, naphtha, wool fibers, inputs for the manufacture of artificial kidney and disposable sterilized dialyzer, and fuels for nuclear power plants. Also in order to incentivize e-mobility, customs duty is being exempted on certain parts of electric vehicles. Customs duty is also being exempted on capital goods required for the manufacture of specified electronic goods.

The list of the item where Customs Duty has been proposed being reduced is:-

  • Naphtha.

  • Methyloxirane (Propylene Oxide).

  • Ethylene dichloride (EDC).

  • Raw materials used in the manufacture of Preform of Silica: -

  • Silicon Tetra Chloride.

  • Germanium Tetra Chloride.

  • Refrigerated Helium Liquid.

  • Silica Rods.

  • Silica Tubes.

  • Wool fiber, Wool Tops.

  • Inputs for the  manufacture of CRGO steel: -

  • MgO coated cold rolled steel coils.

  • Hot rolled coils.

  • Cold-rolled MgO coated and annealed steel.

  • Hot rolled annealed and pickled coils.

  • Cold rolled full hard.

  • Amorphous alloy ribbon.

  • Cobalt mattes, and other intermediate products of cobalt metallurgy.

  • Capital goods used for manufacturing of following electronic items, namely-

  • Populated PCBA.

  • The camera module of cellular mobile phones.

  • Charger/Adapter of cellular mobile phone.

  • Lithium-Ion Cell.

  • Display Module.

  • Set Top Box.

  • Compact Camera Module.

Click here to know more about Highlights of the Income Tax provisions made in Budget 2019

However, to encourage export of sports goods, few items to a certain limit, like foam and pinewood are incorporated in the list of items allowed for duty-free import.

The finance minister has proposed no changes in the defense outlay in the regular budget presented on 5th July. Nirmala Sitharaman Income Tax Budget 2019 had just withdrawal the basic customs duty on import of defense equipment that is not manufactured in India, which should reduce the burden on the defense budget to some extent.


eStartIndia Team

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