With the new Budget 2021, the tech industry has also been impacted. In the coming months, we might see a rise in smartphone rates as the government has decided to remove exemptions on parts of chargers and mobiles in order to promote local manufacturing. The announcement was made official at the Budget 2021 speech by finance minister Nirmala Sitharaman.
According to the new Union Budget, there will be an increase from 0 to 2.5 per cent on customs duty that is imposed on several parts of mobiles.
The finance minister said, “Domestic electronic manufacturing has grown rapidly. We are now exporting items like mobiles and chargers. For greater domestic value addition, we are withdrawing a few exemptions on parts of chargers and sub-parts of mobiles. Further, some parts of mobiles will move from ‘nil’ rate to a moderate 2.5%.”
"The thrust now has to be on easy access to raw materials and exports of value addition," she added.