Finance Minister Arun Jaitley today presented the Union Budget 2015 at Lok Sabha. Keeping in line with Prime Minister Narendra Modi’s “Make in India” project, Jaitley has announced reforms that are set to make locally manufactured mobiles and tablets cheaper.
Jaitley announced, “Excise duty structure for mobiles handsets including cellular phones is being changed from 1 percent without CENVAT credit or 6 percent with CENVAT credit to 1 percent without CENVAT credit or 12.5 percent with CENVAT credit.”
While excise duty for mobile phones without CENVAT credit remains the same, CENVAT credit is more than double now. In the case of tablets as well, “Excise duty structure for Tablet computers has increased from 12 percent to 2 percent without CENVAT credit or 12.5 percent with CENVAT credit.”
In simpler terms, the cost of importing mobile phones and tablets to India is becoming more expensive, which is likely to have an effect on the final price. While the government has made importing expensive, it has taken steps to make manufacturing these products in India, cheaper.
Jaitley said, “Parts, components and accessories (falling under any Chapter) for use in the manufacture of tablet computers and their subparts for use in manufacture of parts, components and accessories are being fully exempted from BCD, CVD and SAD.”
This is in line with Prime Minister Narendra Modi’s “Make in India” initiative. The price of digital cameras too are set to go down as the government has exemted them from basic customs duty. “Basic Customs Duty on Digital Still Image Video Camera capable of recording video with minimum resolution of 800×600 pixels, at minimum 23 frames per second, for at least 30 minutes in a single sequence, using the maximum storage (including the expanded) capacity is being reduced to Nil. Basic Customs Duty on parts and components of these cameras is also being reduced from 5 percent to Nil,” Jaitley said.