New Delhi, Feb 1: Mobile phones and import of mobile phone parts could set to be more expensive as the Union Budget 2018 has increased customs duty on both.
In the Union Budget 2018, the Finance Minister Arun Jaitely declared that customs duty on mobile phones which are imported from outside India will be increased to 20 per cent from the current 15 per cent. For manufacturers, who are importing mobile phone parts into the country, the duty will be hiked to 20 per cent as well from the existing 15 per cent.
“Customs duty on import of mobile phone parts will be increased to 20 per cent from the existing 15 per cent. This will boost jobs in the smartphone sector in India,” Jaitley said during his Union Budget speech.
In his Budget address, Finance Minister said the custom duty was being increased to boost jobs in the sector in India and to help domestic smartphone manufacturers. The Finance Minister also said that the government will introduce amendments to customs act in order to make cross-border trade easier. The hike in customs duty will likely mean an increase in price for mobile phones across the board.
It is not only mobile phones where the customs duty has been hiked by the government. The Union budget 2018 will see customs duty on televisions go up to 15 per cent. The hike in mobile phone parts will also mean that getting repairs for some high-end devices could get more expensive as most of these are imported. The government is hoping the hike in customs duty will boost Make in India initiative.
In December, the government had increased customs duty on various items including mobile phones to 15 per cent from 10 per cent.