NEW DELHI: Finance Minister Arun Jaitley, in his budget speech, said that the Indian government has tweaked customs and central excise duty structure to promote Make in India. The issue involves duty inversion.
He said that changes in customs duty has been brought to provide adequate protection to domestic electronics/hardware industry.
A 2% special additional duty (SAD) on populated printed circuit boards (PCBs) used for making mobile phones, laptops and personal computers.
"Populated Printed Circuit Boards (PCBs) for use in the manufacture of mobile phones, subject to actual user condition - Earlier SAD – Nil, Now SAD – 2%," as per the budget speech.
The Union Budget last year had imposed duties countervailing and basic customs duties on imports of chargers, adapters, battery, wired headsets and speakers used in mobile phones to 29.44%, ET has earlier reported.
The government earlier also annulled duties on inputs, parts and components, subparts for manufacturing of chargers, adapters, battery, wired headsets and speakers of mobile phones. Following representations, a partial duty roll back was agreed upon and only 12.5% countervailing duty was levied on imports of charger, adapter, battery and wired headsets. Special additional duty announced in the budget was also rolled back. The move, analysts had said, would drive investments towards local manufacturing.
Source: telecom.economictimes.indiatimes.com