Home Articles Everything FM announced during Union Budget 2021 for mobile phones and electronics...
KEY HIGHLIGHTS
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FM has announced a hike in customs duty on parts of mobile phones, camera module, and more
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Mobile chargers will now attract 10 per cent customs duty
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Phones may become costlier from April 2021 due to increased customs duty
In a first-ever paper-less budget speech, Finance Minister Nirmala Sitharaman made some important announcements for mobile phones and electronics sector. FM said that domestic electronic manufacturing has grown rapidly, and to promote local manufacturing of phones, the government is withdrawing a few exemptions and increasing customs duty. Here’s everything you need to know about India’s tech budget 2021.
Union Budget 2021 tech announcements
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The government has raised customs duty on mobile chargers from Nil to 10 per cent.
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Some sub-parts of phones, including Printed Circuit Board Assembly (PCBA), camera module and connectors will now attract 2.5 per cent customs duty. This will make mobile phones costlier due to customs from April 2021.
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Custom duty on inputs or parts of moulded plastic of charger or adapter of cellular mobile phones is up by 10 per cent from ‘nil’, while customs on inputs or parts of Printed Circuit Board Assembly (PCBA) of charger or adapter of cellular mobile phones is hiked by 10 per cent.
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Inputs and parts of LED lights or fixtures including LED Lamps will be liable for 10 per cent customs duty from the current 5 per cent.
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Moreover, customs duty on compressor of refrigerators and air conditioners is raised to 15 per cent from the current 12.5 per cent.
It should be noted that the custom duty slabs for chargers and parts of mobile phones will be applicable starting February 2, but other customs will be effective from April 2021.
