Union Budget 2021: Import duty on Mobile Phones and Charger parts increased.

The government has increased the import duty on components being imported from abroad for mobile phones and chargers to boost domestic industries. Finance Minister Nirmala Sitamaran announced that the government has decided to review the exemption on import duty being given on 400 items, including parts used in manufacturing mobile phones.

According to her, "For significant domestic value addition, we are withdrawing a few exceptions on the part of chargers and sub-parts of mobiles. Further, some parts of the mobile rate will move from nil rate to moderate 2.5%".

She announced that our import duty policy should have two objectives. First, it will give a boost to the domestic manufacturing sector and secondly India gets a productive position in Global Value Chain (GVC). The government has imposed a 2.5% import duty on parts used to make the printed circuit board assembly (PCBA) known as a motherboard, camera module, connectors, lithium battery and battery packs. Similarly, the government has increased the charger's PCBA rate from 10% to 15%. This rate will be applicable from 2 Feb. Withdrawl of concessions on other charger parts, the fee rate has been reduced to 10% from 2 Feb.

According to Associate Director Tarun Pathak, mobile and charger prices may raise for a short time. However, at the moment, there is no possibility of immense impact due to the local supply of most parts. Along with this, the government has withdrawn the concessional duty being given on printer's ink, ribbon assembly and assembly gear. 

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