In the Union Budget 2024, Finance minister nirmala sitharaman increased the customs charge on laboratory chemicals from 10% to 150%. university research centres are experiencing work orders being revoked as a result. This applies to all research laboratories, with the exception of physics and maths labs, as they purchase internationally recognised substances from approved vendors, according to a Times of india article.

Scientists have already received word from funding bodies that their budgets are set and cannot be increased. A professor stated, "My lab is a medium-sized lab that works in the field of biology, and we spend about 45–50 lakh a year on chemicals." The tax liability on this expenditure will be ₹1 crore under the new regulations, making my whole bill ₹1.5 crore."

What has nirmala sitharaman announced in the Union Budget 2024?
As per the Budget, "The BCD (basic customs duty) rate on lab chemicals classified under HS 9802 00 00 has been increased from 10% to 150%." Owing to this, an order of ₹1.1 lakh inclusive of tax will now touch ₹2.5 lakh which means tax of ₹1.5 lakh.

What experts feels about the announcement?
A senior scientist told the outlet, “The chemicals under this code make up 90-95% of what we use. Even for most basic experiments, we need chemicals like salts of sodium, potassium, magnesium, and buffers. For growing cells, one needs media, and media needs chemicals. Think of chemicals as the most basic ingredient.”
 
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Budget 2024

G GOWTHAM

31/07/2024 08:32 AM