Budget 2024: Imported mobile phones, chargers to become cheaper

In a major relief for smartphone consumers, Finance Minister Nirmala Sitharaman has proposed to reduce basic customs duty (BCD) on mobile phones and chargers from 20% to 15%.

This comes as India witnessed a three-fold increase in domestic production of mobile phones and almost 100-fold jump in exports over the last six years.

“The Indian mobile phone industry has matured,” Sitharaman says while announcing the reduction of customs duty on mobile phones.

The finance minister also proposed to reduce customs duty on Printed Circuit Board Assembly (PCBA) of cellular mobile phones to 15% from 20% earlier.

Apart from mobile phones, the finance minister proposed to fully exempt customs duties on 25 critical minerals and reduce duty on two of them. “This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors,” says the finance minister. Minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics.

To support energy transition, the finance minister proposed to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. “In view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, I propose not to extend the  exemption of customs duties provided to them,” says the finance minister.

Sitharaman also made a big announcement concerning import duty on gold. To enhance domestic value addition in gold and precious metal jewellery in the country, Finance Minister Nirmala Sitharaman proposed to reduce customs duties on gold and silver from 15% to 6%.

To provide relief to cancer patients, the finance minister proposed to fully exempt three more medicines from customs duties. “I also propose changes in the BCD on x-ray tubes & flat panel detectors for use in medical x-ray machines under the Phased Manufacturing Programme, so as to synchronise them with domestic capacity addition,” says Sitharaman.