The budget may increase import duty on 50 things; This will make imported smartphone and electronics items expensive
Imported smartphones, electronic components and appliances can be expensive after the budget. The government is considering increasing import duty on at least 50 items. It can increase from 5% to 10%. Raising import duty is part of Prime Minister Narendra Modi’s ‘Self-reliant India’ scheme. It aims to promote manufacturing in the country.
Duty on electric vehicle and furniture was increased last year too
The government’s revenue has decreased due to Corona. According to sources, the government can increase the import duty by 20 to 21 thousand crores. The items on the budget that can increase duty include fridges, ACs, furniture and electric vehicles.
Duty on furniture and electric vehicles was also increased last year. The increase in duty this year could have an impact on Tesla, the recent US company to enter India. It was registered in India this month. It plans to launch an electric vehicle here this year.
Last time, duty was increased on many things of common use
In the 2020-21 budget, import duty was increased on footwear, ceiling fans, furniture, toys, walnuts, electrical and electronics items.
The duty on import of electric vehicles was increased from 5% to 15%.
The duty on the essential component printed circuit board assembly (PCBA) of mobile phones was increased from 10% to 20%.
Import duty on butters, cheeses, food grinders, room heaters, T-coffee makers, and hairdryers was also increased to 20% from the earlier 10%.