Phones to be more expensive, Government removes exemption on mobile phone parts

Smartphones in India are to become more expensive as the Government has removed exemptions on mobile phone parts.

The decision to remove exemptions on mobile phone parts has been taken in a bid to promote local manufacturing.

The announcement of removing exemption on mobile phone parts was made by Union Finance Minister Nirmala Sithraman during her Budget speech in the Parliament on Monday.

A 2.5 percent increase in customs duty on mobile chargers and other parts of mobile phones was announced by the Finance Minister.

“Withdrawing exemptions on parts of chargers and mobile phones will boost local manufacturing of smartphones,” Finance Minister Nirmala Sitharaman said.

“Domestic electronic manufacturing has grown rapidly. We are now exporting items like mobiles and chargers. For greater domestic value addition, we are withdrawing a few exemptions on parts of chargers and sub-parts of mobiles. Further, some parts of mobiles will move from ‘nil’ rate to a moderate 2.5%,” the Union Finance Minister said during her Budget Speech.

The new rates will be applicable on inputs, parts or sub-parts for manufacture of specified parts of mobile phones, including: Printed Circuit Board Assembly (PCBA), Camera module and Connectors.

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BUDGET 2021 HIGHLIGHTS:

What gets cheaper?

Gold and silver

Naphtha

Copper scrap

Metal Coins

Nylon fibre

Platinum

What gets expensive?

Petrol and diesel (Due to Agriculture and Infrastructure Development Cess)

Mobile phones