New Delhi, Feb 1: The budget 2018 that will be announced tomorrow (February 1) and in order to boost 'Make In India' it will see a hike in customs duty on the high-end imported phones and electronic items making it costlier.
On July 1 the Govt imposed a customs duty of 10% on mobile phones but later on raised it to 15% on December 14.
This brings a bad news to those who prefer smartphones like Apple and Xiaomi etc, however, it will also boost 'Make In India' initiative and companies will be forced to set up their plants in the country to avoid this extra charge.
But the upcoming budget will also focus on the parts used in electronic items, a government official said.
However, camera modules, display panels and other parts do not attract customs duty. But in the FY17 budget, a 2% of special additional duty was imposed on populated printed circuit boards used for making mobiles phones but removed a few months later. This could now attract customs duty up to 10%
"Rise in import duty will surely impact players who were sourcing and importing large percentage of their LED lamp requirements. This will also impact the unorganised or unbranded segment which was importing cheap LED lamps and products from China," Puneet Dhawan, Senior Vice President and Business Head, Lighting, Orient Electric, told IANS.
With IANS Inputs