Budget 2021: Phones may get costlier as govt raises custom duty on parts
In another bid to boost domestic manufacturing, the government on
Monday announced an increase in custom duty for up to 10 per cent on mobile
chargers and some sub-parts of phones, a move that can make handsets costlier
by 3-4 per cent from February 2.
Finance Minister Nirmala Sitharaman, during her Union Budget 2021-22
speech, said that withdrawing exemptions on parts of chargers and mobile phones
will boost local manufacturing of smartphones.
"Domestic electronic manufacturing has grown rapidly. We are
now exporting items like mobiles and chargers," Sitharaman said.
"For greater domestic value addition, we are withdrawing a
few exemptions on parts of chargers and sub-parts of mobiles. Further, some
parts of mobiles will move from 'nil' rate to a moderate 2.5 per cent,"
she informed.
However, inputs or raw material for manufacture of specified parts
like back cover, side keys etc. of cellular mobile phone has been
increased from 'nil' to 10 per cent.
Inputs or parts of Printed Circuit Board Assembly (PCBA) of
charger or adapter of cellular mobile phones are up from 'nil' to 10 per cent
while the custom duty on inputs or parts of moulded plastic of charger or
adapter of cellular mobile phones has also been increased from 'nil' to 10 per
cent.
Comments
Post a Comment