The Finance Minister Nirmala Sitharaman said that the government will grant customs tax reduction on the import of specific parts such as camera lenses and concessions on the import of lithium ion batteries to stimulate mobile phone manufacture in India.
During her Budget 2023-24 statement on Wednesday, Finance Minister Nirmala Sitharaman reduced customs taxes for the electronics manufacturing industry.
She stated that as a result of numerous government measures, including the fest manufacturing programme, mobile production in India has expanded from 5.8 crore units valued at roughly 18,900 crore in 2014-15 to 31 crore units valued at 2 lakh 75 crore in the most recent fiscal year.
“To further deepen value addition in manufacturing of mobile phones, I propose to provide relief customs duties on import of certain parts and inputs like camera lens and continue concessional duty on lithium iron cells for battery another year,” she said.
The Centre has proposed raising the basic customs tax on kitchen chimneys from 7.5 per cent to 15 per cent and lowering the tariff on heat coils from 20 per cent to 15 per cent. It has also recommended lowering the basic customs duty on components and TV panels to 2.5 per cent in order to encourage value addition in TV manufacturing.