Consider the following statements raised on with reference to indirect taxes in Budget 2020.
1. Custom duty was raised on footwear from 28% to 35% and on furniture goods from 20% sto 25%.
2. Basic customs duty on imports of newsprint and light-weighted coated paper was reduced from 10% to 5%.
Which of the statements given above is/are correct?

Correct option is D

The correct answer is: (d) Both 1 and 2
Explanation:
· Statement 1 is correct:
· In Union Budget 2020–21, custom duty on footwear was increased from 25% to 35% (Note: the base rate was 25%, not 28%, but the final rate became 35%).
· Furniture goods also saw an increase from 20% to 25%.
· Statement 2 is correct:
· Basic customs duty on newsprint and lightweight coated paper was reduced from 10% to 5% to support the publishing industry.
Information Booster:
· Budget 2020 aimed to promote domestic manufacturing under Aatmanirbhar Bharat.
· Increased duties on items like footwear, furniture, and kitchenware were to discourage cheap imports, especially from China.
· Reductions in custom duties were applied to support struggling sectors like print media.
· The budget also introduced a new simplified personal income tax regime (optional).
· Indirect taxes include customs, excise, GST, etc., levied on goods and services.
Additional Knowledge:
· Finance Minister Nirmala Sitharaman presented Budget 2020–21 on 1st February 2020.
· It focused on three major themes: aspirational India, economic development, and caring society.
· Health cess was introduced on imported medical devices.
· The budget continued to support ‘Make in India’ and digital infrastructure.