The Union Finance Minister Nirmala Sitharaman presented the full – budget 2024 today before the parliament at 11 am. In the interest of consumers, FM proposed to reduce the BCD on mobile phone, mobile PCBA and mobile charger to 15 per cent.
“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.”, said FM.
Customs duty on mobile phones and chargers in India is subject to the prevailing rates set by the government, which can change with each budget or through specific notifications by the Ministry of Finance.
Basic Customs Duty ( BCD ) on mobile phones is generally 20%. This rate is applied to the assessable value of the imported mobile phone, including the phone’s cost, insurance, and freight (CIF). An additional 10% on the BCD is levied as Social Welfare Surcharge. Imported mobile phones are also subject to GST at the rate of 18%.
Import of mobile phones and chargers must comply with the import policy of India, including obtaining necessary licenses and adhering to safety and quality standards prescribed by regulatory bodies.
In order to increase value addition in the domestic electronics industry, the FM proposed to remove the BCD, subject to conditions, on oxygen free copper for manufacture of resistors. I also propose to exempt certain parts for manufacture of connectors.
The reduction in customs duty on mobile phones and chargers will enhance the industry. The rationalisation of the import duty structure and reduction in the duties on components of mobile phone parts or sub-assemblies helps to attract global value chains to India and increase manufacturing at scale.
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