As everyone is aware, the maiden Budget of the new Modi-led BJP government in this new legislative session addressed a number of troubling issues. By lowering the customs charge on the import of mobile phones, the government demonstrated its consideration for the advancement of technology in the nation. In yesterday’s budget speech, Finance Minister Nirmala Sitharaman proposed a 5% reduction in the basic customs duty (BCD) on mobile phones, mobile chargers, and mobile PCBAs (printed circuit board assembly) in order to better serve the interests of consumers.
What the Finance Minister says in the speech?
The Finance Minister of India, Nirmala Sitharaman, stated in her budget speech that, “The Indian mobile phone industry has experienced significant growth over the past six years, with domestic production tripling and exports increasing by a factor of nearly 100. To benefit consumers, the finance minister announced plans to lower the basic customs duty (BCD) on mobile phones, their printed circuit boards, and chargers to 15% in the speech.”
What is the need behind these decisions?
One of the biggest reason behind this decrease in tax is the prices of premium smartphone like Apple and Google. This reduction in taxes may reduce the prices of many premium smartphones. The government’s move to lower taxes will undoubtedly result in a decrease in the smuggling of phones that are not built in India due to the high customs charge of 22%. The government loses out on GST money in addition to customs tax when there is smuggling. In the budget, the government has also removed duties on some minerals that are required for the production of parts for mobile phones, as the importation of these devices is declining to only 1% of total units.
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