Government Hikes Import Duty on Phones and Chargers Sub-Parts

The Finance Minister (FM) has hiked the basic customs duty on the import of sub-parts of the mobile phones and battery chargers from zero to 2.5% for the fiscal year 2021 - 2022. The FM did not mention the price impact as the details are yet to be announced.

During her budget speech, Nirmala Sitharaman said that "for greater value addition we are withdrawing a few exemptions on parts of chargers and sub-parts of mobiles. Further, some part of the mobile will move from nil rate to a moderate 2.5%.

So far, the battery charges will attract 15% - 20% customs duty. On the other hand, the handsets will attract 22.5% of duty charges. Some of the sub-assemblies of mobile phones like printed circuit boards, display panels, mechanics and die-cut parts are liable for 10% duty to encourage greater value addition in India.

The mobile phone components in India are liable to pay customs duty totally around 50% of the bill value.

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