Cellphones, TVs to cost more as government hikes import duty

Levy on key electronic items to increase by 10-20%, Centre says it is in public interest
Image used for representational purpose.
Image used for representational purpose.

NEW DELHI: Imported mobile phones, TVs, closed circuit surveillance cameras and 10 more electronic items will attract higher import duty ranging from 10 to 20 per cent, following a decision by the Finance Ministry to ‘do it in public interest’. The move comes after a dip in many ‘Make in India’ targets for electronic goods.

Sources in the Finance Ministry said the emphasis was on mobile phones, LED bulbs and other electronic items manufactured in India as they were not getting into the market or were not being picked up because of a deluge of low-cost, low-technology imported items. The government has set a target of manufacturing 500 million mobile phones in India by 2019 and the target for this year was 290 million, which is more than the 200 million produced, industry observers pointed out. The move will impact local manufacturing, especially those who have more than 50-60 per cent of imported electronic components in their finished products such as LED TVs and mobile phones.

“It is a good move, since there was a clear indication that feature phones were being dumped in India and the government’s concern and response is reflected in this,” said Pankaj Mohindroo, founding national president of Indian Cellular Association.

“We welcome the increase in customs duty from 10% to 20% on import of microwave ovens. This will benefit and promote domestic manufacturing of microwave ovens, supporting the government’s Make in India  initiative,” said Kamal Nandi, business head and EVP, Godrej Appliances.

Sources in the Finance Ministry said more such measures would be undertaken soon to ensure there is parity in domestic manufacturing and imports, especially among manufactured goods.

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