Minister of Finance Nirmala Sitharaman today introduced to Parliament the Union Budget for 2021-22 and made a host of announcements. She discussed domestic electronic manufacturing during her address, which has seen rapid growth. We have attempted to give everything here in this article that you might have missed during her speech.
On Monday, the Minister of Finance confirmed that a few exceptions for parts of chargers and sub-parts of cell phones could be removed, which could lead to a rise in the prices of these items. In addition, some sections of mobiles have been changed from “Nil” to a modest 2.5% pace.
More Tech Related News On Budget 2021:
During the Budget announcement, Finance Minister Sitharaman made statements. She said, “We are now exporting items like mobiles and chargers.” She even confirmed that some parts of mobiles would see a change in customs duty to promote value addition in the electronics sector.
Inputs, components, or sub-parts for the manufacture of designated parts of cell phones, including Printed Circuit Board Assembly (PCBA), Camera Module, and Connectors, will now be subject to a 2.5 percent customs duty by the government. FM Sitharaman has stated that the customs duty reform will take effect from April 2021.
This could mean that thanks to the increased customs duty stated by FM Sitharaman in Budget 2021, smartphones may become costly from April in India.
In addition, on printed Circuit Board Assembly [PCBA] and molded plastic used to produce chargers and adapters, the government has also increased customs duty. From the present 10%, FM Nirmala Sitharaman increased the customs duty on products used in the manufacture of chargers and adapters to 15%.
The government has also agreed to charge a 10% customs duty on inputs and parts other than PCBA and molded plastic, with no customs duties at present.
In addition, there is also something about budget 2021 that you might be missing. The government has declared a 2.5 percent customs duty on inputs, parts, and sub-parts of products other than PCBA and Li-ion cells. These are used in the manufacture of lithium-ion batteries and battery packs or power banks. This could imply that rates may go up for power banks. The introduction of the new customs duty will take place in April 2021.
“We will undertake a new initiative National Language Translation Mission (NTLM). This will enable the wealth of governance-and-policy related knowledge on the Internet being made available in major Indian languages,” FM Sitharaman further added.