High-end imported mobile phones and electronic goods are expected to get costlier post Budget, as these items may see a customs duty rejig, reports The Economic Times. The move, it is anticipated, is expected to give Prime Minister Narendra Modi’s Make in India programme a boost.
Basic customs duty will be levied on electronic components such as printed circuit boards, camera modules and displays, which are at present imported without any duty.
The Budget move is part of a larger scheme which will overhaul and fix the flaws in the existing customs duty structure as finished goods incurred lower duty than the components which were used to manufacture them.
Post implementation of Goods and Services Tax (GST), customs duty is the only levy which still falls under the central government’s domain.
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The government had raised basic customs duty levied on imported mobile phones to 15 percent on December 14, up from the 10 percent which it had levied earlier on July 1 last year.
However, this decision drew flak from tax experts.
“With BCD exemptions available under FTA as well, their impact will also require a separate evaluation on Make in India initiative,” Rahul Shukla, executive director, indirect tax at PwC, was quoted by the paper.
As part of the Make in India programme, the government is planning to make India a manufacturing hub rather than a destination where goods are assembled.moneycontrol