Finance Minister Nirmala Sitharaman has presented the Budget 2020-21 in Parliament. In the budget, the Finance Minister has increased the customs duty on smartphones and chargers to 2.5 per cent from zero. The increase in customs duty will come into effect from 1 April 2021 in the new financial year. This move of the government will increase the price of smartphones imported from India to India. In such a situation, it will be expensive to buy smartphones from some selected brands in India. It is believed that the increase in customs duty on smartphones from the government is being implemented with the objective of strengthening the domestic smartphone industry and promoting the Make in India campaign.
Current smartphone price 2.5% increase New price
Rs 10,000 Rs 250 Rs 10,250
Rs 20,000 Rs 500 Rs 120,500
Rs 30,000 Rs 750 Rs 30,750
Rs 40,000 Rs 1000 Rs 41,000
Rs 80,000 Rs 2000 Rs 82,000
Rs 1,00,000 Rs 2,500 Rs 1,02,500
If the customer buys a smartphone priced at Rs 10,000, then he will have to pay 250 rupees more than before. Similarly, buying a smartphone with Rs 40,000 will cost Rs 1,000 more than before. Whereas the purchase of a flagship smartphone priced at 1 lakh will have to pay about Rs 2,500 more.
Ban on import of mobile parts
Apart from increasing the custom duty on smartphones and charge, the government has also announced to increase the customs duty on import of mobile parts. It consists of a printed circle board assembly (PCBA), connectors, and camera modules. The PCBA custom duty of chargers and adapters has been increased from 10 to 15 per cent. The customs duty of parts of the same mobile charger has been increased from zero to 10 per cent. However, the Finance Minister has announced a cut in customs duty on nylon chip and nylon fiber.
