Budget 2021-22: Government pushes hike on custom duty on import of mobiles, batteries to 2.5%

The duty rate for PCBA and moulded plastic for the manufacture of charger or adapter, duty will be augmented to 15 percent from the existing 10 percent.

The sub-components of phones such as die cut parts, PCBS, mechanics, and display panels will also attract 10 percent duty.

At the budget 2021-22, the union ministry of finance has now implemented a hike in custom duty on imports of mobile phones and batteries from 0-2.5 percent. Currently, components totalling nearly 50 percent bill value of a mobile phone are liable to pay customs duty.

This year, during the ongoing budget session, the finance minister said, “For greater value addition we are withdrawing a few exemptions on parts of chargers and sub-parts of mobiles. Further, some parts of mobile will move from nil rate to a moderate 2.5 percent.” 

Finance minister Nirmala Sitharaman presented the most intricate and challenging budget of the decade as the nation faced a  severe financial strain due to the COVID-19 pandemic. Last year around September, India witnessed a contracted GDP of 7.5 percent during the quarter of July-September 2020. While the April-June quarter witnessed a collapse of the economy to 23.9 percent, which is unprecedented. Hence, to boost the economy and a million dollar electronics and manufacturing cluster, Prime Minister Narendra Modi has already announced PLI schemes, Aatmanirbhar bharat and other initiatives.

From April 1, 2021 onwards, BCD on import of printed circuit board assembly (PCBA), camera modules and connectors will be increased to 2.5 percent. The duty rate for PCBA and moulded plastic for manufacture of charger or adapter, duty will be augmented to 15 percent from the existing 10 percent. In addition, charging equipment and other inputs will have a duty of 10 percent. 

Import Duties

On the other hand, battery charger’s Completely built-up units (CBUs) will have a customs duty of 15-20 percent, while mobile phones will have 22 percent. The sub-components of phones such as die cut parts, PCBS, mechanics, and display panels will also attract 10 percent duty so that in further escalate more value addition in the country.

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