Budget 2021: Phones to get costlier as govt raises import duty on phone parts



News24

LAST UPDATED: Feb. 1, 2021, 3:36 p.m.

New Delhi (Anish Yande): Mobile phones are set to get costlier, according to a decision announced by the government in Budget 2021. Union Finance Minister Nirmala Sitharaman announced the Budget on Monday. Under the Budget, the government has exempted 400 products.

Import duty levied on smartphone parts:

During her speech, the Finance Minister stated that India has commenced exporting mobiles and charges from manufacturing plants in India. The domestic manufacturing of products, which include mobile and smartphone parts, has increased rapidly.

To boost the Make In India initiative, the Centre would be increasing customs duty on certain parts used in the manufacturing of mobile phones.

Sitharaman stated that the customs duty policy must be focused on improving India’s contribution to the global value chain and exporting along with an emphasis on promoting manufacturing in India.

Accordingly, ‘we are withdrawing exemption on parts of chargers and sub-parts of mobile phones.’, the minister stated.

Under the revised exemption, import duty and other levies on parts of smartphones have been changed from a nil rate to a moderate rate of 2.5 percent.

Steel scrap would draw exemption duty for a duration of up to March 2022. The government stated that it would be reducing the Basic Customs Duty rate on nylon fiber and nylon chips, as well.

Customs duty on copper scrap has been reduced from 5 percent to 2.5 percent. The customs duty on steel scrap would be exempted for a certain period as well.

The customs duty rate on parts of a charger such as Printed Circuit Board Assembly has been revised from 10 percent to 15 percent. All other goods under this tariff, excluding the assembly, would have the existing Basic Customs Duty rate of 10 percent.

Previously, smartphones attracted a customs duty of 22.5 percent while battery chargers attracted a customs duty of 15-20 percent. Sub-parts of smartphones such as printed circuit boards, display panels, and die-cut parts attract a customs duty of 10 percent.

Image Credit: Google



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