Mobile phone makers seek tax exemption on capital goods, display components
NEW DELHI, Jan 19 (PTI): Mobile phone firms have sought a customs duty reduction on mobile parts like microphones, printed circuit boards, and wearables, as well as tariff correction on capital goods and other components, to lower the handset production cost, industry body ICEA said in its budget recommendations.
The mobile phone makers’ body has suggested that the government rationalise duty on capital goods, citing recent restrictions imposed by China that threatened local production of mobile phones.
“With China’s recent export restrictions on manufacturing machinery increasing supply-chain risks, India’s dependence on imported equipment has become a strategic vulnerability. It is, therefore, recommended that the government extend the existing zero-duty benefit on capital equipment to all constituent components, sub-assemblies, and assemblies imported specifically for their manufacture,” ICEA said.
