New Delhi10 minutes ago
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Now only a few things become cheaper or costlier in the budget. The government implemented GST across the country on 1 July 2017, after which only custom and excise duty is increased or decreased in the budget. The increase or decrease in duty has an indirect effect on the prices of things.
| Product | Cheap | Reason |
| Phone | 15% | Custom duty on mobile phone parts reduced |
| gold Silver | 6% | Custom duty on gold and silver reduced |
| Cancer drugs | Duty removed from cancer medicines | |
| Electronic Goods | Duty reduced on electronic goods |
Cylinder became cheaper by Rs 300 in one year, gold and silver became costlier by Rs 13,000
In the last one year, gold and silver have become costlier by Rs 13,000. The price of domestic gas cylinder has come down by Rs 300. During this period, tur dal has become costlier by about Rs 30 per kg. There has not been much change in the prices of soybean oil, flour and rice. In the 7 graphics below, you can see what became cheaper and what became costlier in the last one year…
Products getting cheaper and costlier due to increase and decrease in indirect taxes in the budget
To understand why a product is cheaper or more expensive, we must first understand the taxation system. Taxation is divided into direct tax and indirect tax:
1. Direct Taxes: It is levied on the income or profits of people. Taxes like income tax, personal property tax come under it. The burden of direct tax is borne by the person on whom the tax has been imposed and it cannot be passed on to anyone else. The Central Board of Direct Taxes (CBDT) governs it.
2. Indirect Tax: It is levied on goods and services. Taxes like custom duty, excise duty, GST, VAT, service tax are included in it. Indirect tax can be shifted from one person to another.
Like the wholesaler passes it to the retailers, who pass it to the customers. That is, it ultimately affects the customers. This tax is governed by the Central Board of Indirect Taxes and Customs (CBIC).
90% of products are under the purview of GST, decisions related to this are taken by the GST Council
After 2017, the price of about 90% of the products depends on GST. All decisions related to GST are taken by the GST Council. Therefore, there is no change in the prices of these products in the budget.
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