The new Budget for the year raises basic customs duty on several items such as mobile phones, television sets, and automobile parts. The budget also comes up with a 10% social welfare surcharge on the custom duty.
The government takes a strong step towards boosting the ‘ Make In India ‘ programme and turns to the import duty framework to foster domestic investment for the welfare of the nation. A raising bar has also been set up in custom tariffs with an increment of 5-20 percentage points on several items that have witnessed large imports in the past years.
A positive initiative from the government could also be to make compliance easier for business. Chosen category of importers, as well as exporters, can have the benefit of special regime followed by a simple procedure.
As per tax experts and industry executives, the message was prominent and justified: “Make in India”
The increased percentage on customs duty on specified automobile components to 15% from 7.5-10% will create a huge impact on automakers who import parts, stated Abhishek Jain, a partner at EY.
Motorola Mobility India managing director Sudhin Mathur also stated that their company has doubled up the production at an alarming rate this financial year.
The custom duty on TV parts like the cabinet and printed circuit board hiked to 15% from 10% will create an impact on several companies to start manufacturing or locally sourcing these components, stated the industry executives.
Nirmal Minda, chairman of auto parts maker Minda Industries said ” The government decision will bring about not only raising bars in investments but also technologies and development in the sector. “