The government on Tuesday proposed slashing import duty on mobile phones, chargers and some components that are used for manufacturing of handsets in the Union Budget for fiscal year 2024-25.<\/p>\n
Finance Minister Nirmala Sitharaman said with a three-fold increase in domestic production and almost 100-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured.<\/p>\n
“In the interest of consumers, I now propose to reduce the BCD (basic customs duty) on mobile phone, mobile PCBA and mobile charger to 15 per cent,” Sitharaman said.<\/p>\n
Earlier BCD on mobile phones, chargers and motherboard was 20 per cent.<\/p>\n
The government has proposed to exempt specified goods for use in manufacturing of connectors in mobile phones and oxygen-free copper for use in manufacturing of resistors (an electronic component) from BCD levy.<\/p>\n
The BCD on specified goods for use in manufacturing of connectors was in the range of 5 to 7.5 per cent and oxygen-free copper for use in manufacturing of resistors attracted 5 per cent BCD.<\/p>\n
Mobile phone industry body ICEA said that the move will enhance export competitiveness of India in the segment.<\/p>\n
“We had recommended to reduce BCD on mobile phones, its PCBA and charger\/adapter to 15 per cent, which has been accepted. The mobile and electronics industry is elated with the announcements and will go a long way to enhance manufacturing, exports and our competitiveness,” ICEA chairman Pankaj Mohindroo said. <\/p>\n