Budget 2023 offers tax cut for compressed bio gas

Budget 2023 offers tax cut for compressed bio gas

The Union Budget 2023 speech addressed some major concerns for India's progress towards clean energy. The govt is reducing taxes on compressed bio gas that is blended with CNG. This could reduce the cost of CNG. The Union Budget approved that a customs duty exemption is being extended for machinery and lithium-ion cells to keep EV prices in check.

During the Budget 2023 speech, Finance Minister Nirmala Sitharaman said: To avoid cascading of taxes on blended compressed natural gas, I propose to exempt excise duty on GST-paid compressed bio gas contained in it. Customs duty exemption will be extended to import of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles to give impetus to green mobility. In the Union Budget 2023, the finance minister is proposing to reduce taxes on compressed bio gas, which is mixed with CNG to make it more eco-friendly. The changes are being introduced to encourage the use of more environmentally friendly energy sources.

The finance minister claimed that the changes would make it easier for companies to import the machinery and equipment needed to make batteries for electric vehicles. This is aimed at promoting the use of electric vehicles.

The finance minister also offered relief to smartphone makers. The govt has decided to reduce customs duty on imports of certain parts and inputs like the camera lens. This will lead to lower manufacturing costs for made-in India products.

Finance Minister Nirmala Sitharaman said that mobile phone production in India has gone up from 5.8 crore units valued at about 18,900 crore in 2014 - 15 to 31 crore units valued at over 2,75, 000 crore in the last financial year as a result of various initiatives of the Government. She said that to further strengthen domestic value addition in the manufacture of mobile phones, I propose to give relief in customs duty on import of certain parts and inputs like camera lenses and to continue the concessional duty on lithium-ion cells for batteries for another year. The reduction in customs duty on import of certain components for mobile phones is a welcome move and will be a further boost to the domestic value addition and further development of the electronics components ecosystem in India, according to Prabhu Ram, Head Industry Intelligence Group, CyberMedia Research CMR. He said that the proposal to set up 100 labs for developing 5 G applications at Indian engineering institutions is a step in the right direction to realize new opportunities that 5 G posits, and develop India-specific 5 G use cases for education, healthcare and agriculture.