Lithium-ion cell and PCB assembly will face 5 per cent and 10 per cent customs duty, respectively.
The government imposed basic customs duty on lithium-ion cell and printed circuit board (PCB) assembly used in cellphone battery packs in line with its policy to boost local manufacturing.
Lithium-ion cell and PCB assembly will face 5 per cent and 10 per cent customs duty, respectively. The government, however, exempted import of parts, sub-parts and raw material used in making lithium-ion cells from the customs duty.
There is, however, no change in the basic customs duty on import of lithium-ion battery for cellular mobile phones, which remains taxable at 15 per cent, reported Economic Times. A notification to this effect has been issued by the Central Board of Indirect taxes and Customs.
As part of its Make in India plan, customs duty was slapped on smartphones in July 2017 and it was subsequently raised in the 2018-19 budget. Pratik Jain, partner and leader — indirect tax at PwC India said to ET that the changes in customs rate is clearly a step towards the Make in India initiative by the government for mobile phones or electronic goods and aligning the duty rates with the Phased Manufacturing Programme (PMP) of the ministry of electronics and information technology.