NEW DELHI: Union Finance Minister Nirmala Sitharaman announced a significant reduction in the basic customs duty on mobile phones, mobile chargers, and precious metals including gold and silver during the presentation of the 2024 Union Budget on July 23, Tuesday.
Sitharaman revealed that the basic customs duty on mobile phones and accessories would be cut to 15 percent from the previous 20 percent. This reduction extends to mobile phone components, such as printed circuit board assemblies (PCBAs) and chargers. Additionally, the budget includes exemptions on duties for critical minerals like lithium, copper, cobalt, and rare-earth minerals, as well as the removal of customs duties on oxygen-free copper used in manufacturing resistors and certain connector parts.
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This reduction is expected to lower the prices of mobile phones and related accessories, making them more affordable for consumers. Sitharaman highlighted the rapid growth in the mobile phone industry, noting a threefold increase in domestic production and a 100-fold surge in mobile phone exports over the last six years.
In addition to mobile phones, the finance minister announced a reduction in customs duty on gold and silver to 6 percent, down from the previous 15 percent, which included a 10 percent basic customs duty and a 5 percent Agricultural Infrastructure Development cess. The duty on platinum has also been reduced to 6.4 percent. These changes aim to enhance domestic value addition in gold and precious metal jewellery, potentially lowering domestic prices and boosting demand for these metals.
Analysts predict that the reduction in customs duties on gold and silver will lead to a decline in domestic prices, encouraging higher demand for precious metals in the country.
The budget also addressed other commodities and sectors, balancing economic growth with consumer needs. For instance, the basic customs duty on specified telecom equipment has been increased from 10 percent to 15 percent, while exemptions have been extended to solar panels, solar cells, electric vehicles, and certain critical minerals.