Finance Minister Nirmala Sitharaman announced the Union Budget 2021 in the parliament earlier today. One of the biggest announcements for the technology and electronic gadgets industry of the country is the increase of custom duty on mobile chargers and some sub parts of phones. Some parts of mobile phones will also move from NIL custom duty to a Moderate custom duty of 2.5 per cent, Sitharaman announced. Also Read - Today's Tech News: Union Budget 2021, popular Twitter accounts banned, more
During the announcement, FM said, “Withdrawing exemptions on parts of chargers and mobile phones to boost local manufacturing of smartphones.” In simple words, we can expect smartphone prices to go up marginally in the country. Also Read - Union Budget 2021 to boost digital payments in India: Here are all details
The idea behind this the Finance Minister said is to boost domestic electronic manufacturing. FM also added that domestic manufacturing has grown drastically over the years. “We are now exporting mobiles and chargers to the world,” Sitharaman added. Also Read - Union Budget mobile app allows you access all Budget 2021 related documents
“Domestic manufacturing has grown rapidly. We are now exporting items like mobile and chargers. For greater domestic value additions, we are withdrawing exemption on parts of chargers and sub parts of mobile phones. Some parts of mobile will also move from nil rate to a moderate 2.5 percent,” Sitharaman said during the Budget 2021 announcement.
Notably, exemptions on parts of mobile phone chargers and some part of mobiles will be removed as part of Phased Manufacturing Program (PMP) to augment PLI Schemes, said Nischal S Arora, Partner, Nangia & Co.