Basic import duty on certain phone components scrapped
1 month, 3 weeks ago

Basic import duty on certain phone components scrapped

The Hindu  

The basic customs duty of 2.5% imposed on certain smartphone components has been scrapped, following a glide path recommended by the electronics manufacturing industry last year. “The rationalisation of tariffs on key inputs and components creates a more competitive cost structure and encourages deeper integration with global value chains,” said Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association, which represents electronics manufacturing and assembly firms. ‘Nuisance duties’ The customs duties on components such as printed circuit board assemblies, camera modules, connectors, wired headsets, microphones, USB cables, fingerprint scanners were “nuisance duties”, Mr. Mohindroo had complained last year, adding that they did not contribute significantly to promote domestic manufacturing. “The industry has reached a gigantic scale of ₹60 billion in annual production.” Additionally, Mr. Mohindroo welcomed the changes in the income tax regime, saying that having zero income tax up to ₹12 lakh in annual income would boost demand for electronics.

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