The government may impose additional duty on imported motherboards of mobile phones under phase manufacturing programme from April onwards, according to an official source aware of the proposal.
“There is proposal to increase import duty on three components used in mobile phones – printed circuit board (the motherboard), camera modules and connectors. It is part of Phase Manufacturing Programme notified in May 2017,” an official source said.
At present there is zero import duty imposed on the three components.
When asked about quantum of duty that can be imposed, the source said that for PCB industry and Ministry of Electronics and IT proposed 10 per cent import duty but the final outcome is dependent on the finance ministry.
The government has already imposed 15 per cent import duty on chargers, battery, headset, speaker, microphone, keypad etc as per phased manufacturing programme (PMP).
The PMP aimed at boosting indigenous production of mobile phones by providing tax relief and other incentives on components and accessories used for the devices.
Reacting to the proposal, mobile devices industry body Indian Cellular National President Pankaj Mohindroo said “Predictability is the hallmark of great economies. India announced the PMP and has followed it diligently. However, only imposing duty will not do the job. A profound and calibrated 360 degree programme, which makes industry globally competitive, is required.
Sections of the industry are still not ready and are clamouring for a postponement by 3 months, he added.