ICA welcomes Govt’s move to slash import duty on mobile phone components

New Delhi, May 10 (KNN) Indian cellular Association (ICA) has hailed the government’s decision to slash import duty on components for manufacturing of mobile phones. In a surprise move, the Indian government has withdrawn 29.44 percent import duty to bring it down to 12.5 percent.

ICA President Pankaj Mohindroo said that the Budget 2016 proposals had resulted in duty structure with high duty of 29.441% on key parts like batteries, chargers and headsets compared to complete mobiles which were at low duty of 12.50%.

The government has slashed the BCD (Basic Customs Duty) and SAD (Special Additional Duty) on these items to zero percent as opposed to 10 percent and 4 percent respectively, as announced in the Union Budget 2016-17.

The Co-Chairman of the Fast Track Task Force & CMD of Lava International, Hari Om said that with these amendments, the hurdles on mobile manufacturers have been removed. The road is now clear for manufacture of both smart phones and relatively low value feature phones for the common man. 

Josh Foulger, Co-Chairman of the Fast Track Task Force & Country Head and MD – Foxconn, said that the quick correction of course by the Government after the Budget will create the eco system for mass manufacturing of both mobile phones and parts in a balanced way. 

Earlier this year, Finance Minister Arun Jaitley Union had proposed to make import of accessories such as wired headsets and speakers and battery expensive in a bid to boost local manufacturing in India. (KNN Bureau)