India Government has imposed a 10 percent tax on imports of key smartphone components as part of the strategy to boost domestic manufacturing of smartphones in the country, Reuters reported.
The 10 percent import tax, which is imposed on the import of populated printed circuit boards, which power smartphones, will reduce dependence on imports from several overseas nations. Domestic smartphone manufacturing companies are yet to make any comment on the new duty structure on smartphone components.
The government’s move on Monday confirmed reports that the country was exploring new duties on the imports of printed circuit boards that include components such as processors, memory and wireless chips.
A 10 percent customs tax was also imposed on the imports of camera modules for phones and connectors.
The move, part of a phased manufacturing plan for lifting local production of mobile devices, is aimed at boosting Prime Minister Narendra Modi’s flagship ‘Make In India’ drive to turn the country into a manufacturing hub, like neighbouring China.