Customs duty raised to promote Make in India

Custom Duty

The government had raised customs duty on several telecom equipment in October and imposed duties on PCBs to curb non-essential imports to address its current account deficit as well as encourage the ‘Make in India’ initiative.

The government of India once again imposed basic customs duty on lithium-ion cell and printed circuit board (PCB) assembly used in cellphone battery packs in line with its policy to boost local manufacturing.

Lithium-ion cell and PCB assembly will face 5% and 10% customs duty, respectively. The government, however, exempted import of parts, sub-parts and raw material used in making lithium-ion cells from the customs duty. There is, however, no change in the basic customs duty on import of lithium-ion battery for cellular mobile phones, which remains taxable at 15%.

Central Board of Indirect taxes and Customs issued the notice for the same.

Telecom products including base stations, optical transport equipment, combination of one or more of Packet Optical Transport Product or Switch (POTP or POTS), Optical Transport Network (OTN) products and IP radios were already facing customs duty of 20% instead of 10%.

Pratik Jain, partner and leader at indirect tax at PwC India, said,

“The changes in customs rate is clearly a step towards the Make in India initiative by the government for mobile phones or electronic goods and aligning the duty rates with the Phased Manufacturing Program (PMP) of the ministry of electronics and information technology.”

 

Source: The Economic Times

A group of tech enthusiasts who are tracking latest developments in CleanTech with special focus on Energy Storage and Electric Mobility

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A group of tech enthusiasts who are tracking latest developments in CleanTech with special focus on Energy Storage and Electric Mobility

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