Budget 2024 - Duty on chemicals up from 10% to 150% - Researchers say 'Mindless'
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-data-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."
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.
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.”