10% basic Customs Tax for imported mobile phones
Posted on: 01/Jul/2017 2:27:44 PM
The central government has imposed 10% customs tax on all imported mobile phones and spares.
This initiative has been taken with a view to encouraging domestic mobile phone manufacturers.
The central government has informed that though 10% basic customs tax has been imposed, the tax would be exempted when the components are imported for assembling and manufacturing in India.
Before implementation of GST, as per the prevailing taxes, the imported mobile phones were costing 11.5% more in the market as compared to the domestic counterparts.
After GST, the mobile phones have been brought under the 12% slab. This affected the prevailing favourable conditions for the domestic product. In order to counter this, the central government has come up with the proposal to impose 10% basic customs tax for the imported phones and spares.
A notable point is that though GST has come into force, there is no change in the basic customs tax.
