Back in 2023, the Indian government increased the Basic Customs Duty on smartphones and related accessories to 20%. However, as part of the Union Budget 2024, the government has decided to reverse its decision. On July 23, 2024, the Union Finance Minister Nirmala Sitharaman gave the budget speech addressing the parliamentary session. During the speech, Sitharaman addressed the taxation related to different products and services.
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Basic Customs Duty On Smartphones To Go Back To 15%
During her speech, Sitharaman announced that the Basic Customs Duty on smartphones, mobile printed circuit board assembly, and chargers will decrease from 20% to 15%. While this might not immediately impact the industry, it could lead to a decrease in smartphone prices in the next few months, especially the ones for which the manufacturers import parts from outside the country. While several companies make their smartphones in the country, they still import some parts.
With the decrease in Basic Customs Duty, consumers should expect such models, and the ones that are entirely imported, like the iPhone 15 Pro series, to become more affordable. Even a 5% decrease in the price could save users thousands of rupees, making the phones more accessible. Surely, the decrease in Basic Customs Duty is an attempt to encourage consumers to purchase more smartphones, which would keep up the upward trajectory of the country’s smartphone industry.
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“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 on mobile phones, mobile OCBA, and mobile chargers to 15%,” said the Union Finance Minister. As and when companies announce any discounts on smartphones, we’ll keep you informed.
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