Aiming to the boost the domestic smartphone manufacturers, the union government has imposed a 10 percent duty on import of key smartphone components.
Minister of State for Finance Shiv Pratap Shukla tabled notification documents in this regard in the Lok Sabha which seek to “withdraw exemption from basic customs duty (BCD) on printed circuit board assembly, camera module and connectors of cellular mobile phones and impose 10 percent BCD on them…”.
With the notification, components like camera module and printed circuit board assembly, will invite 10 percent import duty.
In another notification, the revenue department has increased the basic import duty on populated, loaded or stuffed printed circuit boards, related to telephones (including mobile phones) from nil to 10 percent.
It should be noted that earlier in the Budget 2018-19, the government had hiked customs duty on mobile phones to 20 percent from 15 percent.
Besides,, India is now the second largest mobile phone producer in the world after China, as per information shared by the Indian Cellular Association (ICA) with Telecom Minister Manoj Sinha and IT Minister Ravi Shankar Prasad.
Government’s flagship ‘Make In India’ programme along with specific incentives are aimed at bolstering domestic manufacturing of IT and electronic products.
According to data shared by the ICA, India accounted for 11 percent of global mobile production in 2017 compared to 3 percent in 2014.
India replaced Vietnam to become the second largest producer of mobile phones in 2017.
With the rise in mobile phone production, imports of the devices in the country also reduced to less than half in 2017-18. The government has already imposed 15 percent import duty on chargers, battery, headset, speaker, microphone, keypad etc as per phased manufacturing programme (PMP).
The PMP is aimed at boosting indigenous production of mobile phones by providing tax relief and other incentives on components and accessories used for the devices.