Union Budget 2024: Union Finance Minister Nirmala Sithraman on Tuesday proposed reduction of basic customs duty (BCD) on mobile phones, mobile charger to 15 per cent. Earlier, the BCD on electronic items such as mobile phones, mobile printed circuit board assembly was 20 per cent.

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"With a three-fold increase in domestic production and almost a 100-fold jump in exports of mobile phones in the last six years, the Indian mobile industry has matured. In the interest of consumers, I now propose to reduce the basic customs duty (BCD) on mobile phones, mobile PCBA, and mobile chargers to 15%," Sitharaman said while presenting the Union Budget 2024-25 in Parliament.

Moreover, the government also made a provision for the exemption of customs duty on 25 critical minerals including lithium, copper, cobalt, and rare-earth minerals. These minerals are used in the production of some high-tech electronics and telecom gear.

"To increase value addition in the domestic electronics industry, I propose to remove the BCD, subject to conditions, on oxygen-free copper for manufacture of resistors. I also propose to exempt certain parts to manufacture connectors," she said. 

The minister announced the removal of basic customs duty on ferronickel, blister copper, while increasing the same to 15 per cent from 10 per cent on specified telecom equipment.

The reduction in basic customs duty of gold, silver and platinum has been a long pending demand of the gems and jewellery industry.

Sitharaman also proposed reduction in basic customs duty on certain brood stocks, shrimps and fish feed to 5 per cent.

On the other hand, she said the government will raise customs duty on ammonium nitrate to 10 per cent and 25 per cent on non-biodegradable plastics.