Budget: Govt cuts customs duty on parts for mobile phone, TV open cell
1 min read 01 Feb 2023, 01:56 PM ISTThe government has reduced customs duty on camera lens for camera module and input/sub parts for lens of camera module of mobile phone from 2.5% to zero. Specified chemicals or items for manufacture of pre-calcined ferrite powder, for palladium tetra amine sulphate for manufacture of parts of connectors have been exempted from customs duty
PremiumNew Delhi: The government will reduce customs duty on import of some parts for mobile phone manufacturing and on open cells used in the manufacturing of television sets, finance minister Nirmala Sitharaman said on Wednesday while announcing the Union Budget for 2023-24.
The move is an attempt at deepening domestic manufacturing.
“To further deepen domestic value and manufacturing of mobile phones, I propose to provide relief on customs duty on input of certain parts like camera, lens and continue the concession of duty on lithium batteries for another year," Sitharaman said in her Budget speech.
The minister said that India’s mobile phone output rose to 31 crore units last fiscal from 5.8 crore units in 2014-15 .
The government has reduced customs duty on camera lens for camera module and input/sub parts for lens of camera module of mobile phone from 2.5% to zero. Specified chemicals or items for manufacture of pre-calcined ferrite powder, for palladium tetra amine sulphate for manufacture of parts of connectors have been exempted from customs duty. Additionally, customs duty on parts for manufacture of open cells of TV panels has been reduced to 2.5% from 5%.
Mint had reported that the government was considering proposals from the industry, seeking reduction in duty on components used in production of mobile phones. High duties on mechanics, being imported, were making the industry uncompetitive, it had claimed.
“Customs duty exemption is being provided to import of specified capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles as is available for manufacture of lithium-ion cells for batteries used in mobile handsets," as per the Budget documents.
Industry experts said the move will help companies ramp up production and welcome new players into manufacturing, while furthering the government’s Make in India programme.
“This is a big boost to manufacturing on mobile phones and television in India by extending the reduction in custom duty. This will welcome global players to establish manufacturing in India," said Maneet Pal Singh, Partner, I.P. Pasricha & Co.
“Make in India push continues in line with the announcements in the previous few budgets. Customs duty is proposed to be reduced across sectors from 21% to 13%. This is a welcome change. Relief by way of reduced customs duty on inputs meant for mobile phone production is also specifically proposed," Mahesh Jaising, partner at Deloitte India said.
