Summary
Finance Minister Nirmala Sitharaman increased the customs duty on laboratory chemicals from 10% to 150% in the Union Budget 2024. This significant rise is causing disruption in research activities at university labs across India, with many cancelling work orders due to the prohibitive costs. The new duty impacts chemicals essential for basic experiments, and funding agencies have confirmed that research budgets cannot accommodate the increased expenses. Experts argue that this policy will hinder research progress and damage the scientific community.
Key Points
– Customs duty on laboratory chemicals raised from 10% to 150%.
– University research centers are facing cancelled work orders.
– The increase affects chemicals for all labs except those in physics and maths.
– The tax hike results in a substantial increase in research expenses.
– Funding agencies have fixed budgets with no possibility of increase.
– Experts criticize the policy as damaging to research culture and compare it to previous issues with GST and procurement processes.
