Union Finance Minister Nirmala Sitharaman, while presenting Budget 2024 in the Lok Sabha, announced the proposal to reduce the basic custom duty on mobile phones and chargers to 15 per cent from 20 per cent. This proposal could lead to a significant drop in the price of mobile phones and phone chargers this financial year.
While presenting the Union Budget 2024-25 in Parliament on Tuesday, FM Sitharaman said that there has been a three-fold increase in the domestic production of mobile phones in the last six years, and that the Indian mobile industry has matured over the last decade.
“With a three-fold increase in domestic production and almost a 100-fold jump in exports of mobile phones in the last six years, the Indian mobile industry has matured. In the interest of consumers, I now propose to reduce the basic customs duty (BCD) on mobile phones, mobile PCBA, and mobile chargers to 15 percent,” the finance minister said in the Lok Sabha.
“To increase value addition in the domestic electronics industry, I propose to remove the BCD, subject to conditions, on oxygen-free copper for the manufacture of resistors. I also propose to exempt certain parts for the manufacture of connectors,” she added.
In totality, the central government made three custom duty proposals in Budget 2024. The Centre proposed a reduction in basic customs duty for mobile phone, mobile PCBA, and mobile chargers; removal of custom duty on three medicines essential for cancer patients; and exemption of 25 critical minerals from customs duty.
Earlier this year, the Narendra Modi-led NDA government announced a reduction in import duty imposed on several parts used in the manufacture of mobile phones, from 15 percent to 10 percent. These parts include inputs used in the manufacture of battery covers, main lenses, back covers, antennas, SIM sockets, and other metal and plastic parts.
Not just mobile phones, but Nirmala Sitharaman also proposed a reduction in basic customs duty on gold and silver to 6 per cent and platinum to 6.4 per cent during the Budget 2024 speech on Tuesday. Sitharaman also proposed a reduction in basic customs duty on certain brood stocks, shrimps, and fish feed to 5 per cent.
