Smartphones laptops may become cheaper:Govt cuts tax on key components of electronic devices

The Central Government has removed the Basic Customs Duty (BCD) on materials used in manufacturing electronic devices like smartphones, laptops, wearables (smartwatches, fitness bands), and smart TVs in the country. Now, Basic Customs Duty will not be levied on materials used in the manufacturing of display assemblies, lithium-ion cells, and inductor coil modules. The government has taken this step to promote domestic production. Exemption will remain in effect until March 2029, companies’ costs will reduce The objective is to support the PLI scheme and reduce dependence on imports This decision of the government is aligned with the objectives of the Production Linked Incentive i.e., PLI scheme running for electronics manufacturing. Currently, India has to depend heavily on other countries (especially China and Vietnam) for key items like display assembly and lithium-ion cells. After this duty exemption, production at the local level will increase, which will reduce India’s dependence on foreign countries. Smartphones, Laptops and Smart TVs Could Become Cheaper Industry experts believe that display assembly and lithium-ion cells constitute a very large portion of the total cost of any smartphone, laptop or smart TV. The removal of basic custom duty on these will provide significant relief to companies in manufacturing. In the coming time, companies may transfer this benefit to customers, which could reduce the prices of electronics products made in India. What is Basic Custom Duty? Basic Custom Duty, i.e., BCD, is the tax levied on the import of goods coming from outside the country. Removing it means that companies will now be able to procure raw materials from abroad without any additional tax and prepare the final product in India.