From automotive to telecom, here's how the Budget affects key sectors

Automotive

• Renewed emphasis on scrapping of old vehicle of Central and State Governments
• Boost to local manufacturing – BCD increased for import of Semi-Knocked Down (SKD) and Completely Built Unit (CBU) of specified class of vehicles.
• Exemption on Specific capital goods/machinery for the manufacture of Lithium-ion cell for use in battery of electrically operated vehicle (EVs)
• Exemption extended till March 2024 on import of Lithium-ion cell for use in the battery pack of electrically operated vehicle (EVs) or hybrid motor vehicle
• Tax withholding to apply on benefit/perquisite provided in cash as well
• Payment to MSMEs to be deductible on payment basis

Financial services

• Financial sector identified as one of the priority sector as part of “Vision Amrit Kaal
• Financial sector regulators to be encouraged to have a KYC system fully amenable to meet the needs of Digital India
• National financial information registry to be set up in consultation with the RBI, to serve as the central repository of financial and ancillary information
• For simplification and ease of compliances, financial sector regulators to carry out a comprehensive review of existing regulations

Telecom

• Setting up of 100 labs for developing applications using 5G services in engineering institutions to realise new range of opportunities, business models, and employment potential
• BCD on camera lens for camera module and input/ parts for lens of camera module of mobile phone reduced from 2.5% to Nil subject to IGCR
• Extension of concessional duty as follows:  Lithium-ion cell for use in the manufacture of battery up to 31 March 2024

Pharma and Life Sciences

• With the aim to promote Research & Development, Government shall launch new programme in pharma sector
• Joint Public and Private medical research to be encouraged via select ICMR labs
• BCD exemption extended upto 31.03.2025 on certain specified products like specified drugs, medicines, diagnostics kits and other life-saving drugs
• Conditional BCD exemption extended upto 31.03.2024 on specified goods used for manufacture of orthopaedic implants

Steel and Infrastructure

• Government intends to increase capital investment outlay, incentives, and projects for boosting infrastructure, productive capacity, and employment growth
• Duty exemption extended upto 31st March 2024 on raw materials for use in manufacturing of Cargo Steels
• Concessional rate extended up to 31st March 2024 on zinc metal recovered by toll smelting or toll processing from zinc concentrates
• Tax withholding to apply on benefit/perquisite provided in cash as well

Disclaimer: The data have been provided by EY. Neither EY nor Business Standard is liable for any action taken on the basis of this data