Union Budget 2024: Mobile Phones, Chargers To Get Cheaper As FM Sitharaman Eases Basic Customs Duty
Union Budget 2024: 25 critical minerals, including Lithium, to be exempted from customs duties and BCD on two of them will be reduced.
Union Budget 2024: Smartphones will now get cheaper in India as Finance Minister Nirmala Sitharaman announced a notable reduction of basic customs duty (BCD). During her record-setting seventh consecutive presentation of the Union Budget 2024, the Finance Minister announced several reductions in BCDs on multiple items.
What Is BCD?
For those unaware, BCD is a tax levied on all imported goods, as a percentage of all the final assessable value.
A reduction in BCD will lead to a reduction in the price of units.
ALSO READ: Union Budget 2024: FM Sitharaman Announces Revised Tax Slabs For New Tax Regime
How Much Is BCD Reduced For Smartphones?
As announced in the Union Budget 2024, the BCD on mobile phones, mobile printed circuit board assembly (PCBA), and mobile chargers will be reduced to 15 per cent.
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👉Basic customs duty #BCD on mobile phone, mobile PCBA and mobile charger to be reduced to 15% - FM @nsitharaman @FinMinIndia #Budget2024 pic.twitter.com/KrTDkKqUQr
Furthermore, 25 critical minerals to be exempted from customs duties and BCD on two of them will be reduced. These minerals include the likes of lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics.
The list of exempted capital goods for use in the manufacture of solar cells and solar panels will be expanded in the country.
It should also be noted that customs duty has been proposed to be removed on oxygen-free copper which is used in the manufacturing of resistors and also, certain parts for the manufacture of connectors will be exempted.
Smartphones To Get Cheaper
The major new exemptions and reductions primarily mean that smartphones and other electronic devices are expected to get considerably cheaper as the primary components used in the manufacturing of such units will now face a much-relaxed customs duty.
It can also be expected that Lithium batteries, mostly used in smartphones and tablets, will now get cheaper.
Modi 3.0 Announces Change In Income Tax
The income tax brackets for the fiscal year 2024-25 have been updated under the new tax regime.
The revised tax slabs are as follows:
- No tax on income up to Rs 3 lakh
- 5 per cent tax on income between Rs 3 lakh and Rs 7 lakh
- 10 per cent tax on income between Rs 7 lakh and Rs 10 lakh
- 15 per cent tax on income between Rs 10 lakh and Rs 12 lakh
- 20 per cent tax on income between Rs 12 lakh and Rs 15 lakh
- 30 per cent tax on income above Rs 15 lakh
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