Finance Minister Nirmala Sitharaman presented her fourth straight Union Budget in the Parliament on Tuesday. Budget 2022 Customs duty changes for electronics, Income Tax Slabs Unchanged. Has proposed customs duty changes on components of mobile phone chargers, camera lens of mobile phones and other parts of electronics devices including hearables and wearables.
The Budget 2022 is likely to come as a disappointment to salaried taxpayers, as little to no changes were brought into effect in terms of income tax. In case of domestic company, the rate of income tax slab shall be twenty five per cent. of the total income, said the Budget. This will be applicable if the total turnover or gross receipts of the previous year 2019-20 does not exceed four hundred crore rupees and in all other cases the rate of Income-tax shall be thirty per cent. of the total income.
In the case of company other than domestic company, the rates of tax are the same as those specified for the FY 2020-21, the Budget said. Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart metres. Duty concessions are also being given on parts of transformer of mobile phone chargers and camera lens of mobile camera module and certain other items, Union finance minister Nirmala Sitharaman said on Tuesday while presenting her fourth budget.
“This will enable domestic manufacturing of high growth electronic items,” she noted. According to a vision document released by communications and information technology minister Ashwini Vaishnaw earlier this week, the segment is expected to rise to $8 billion in exports in FY26 from virtually nil exports in FY21, while electronics components exports are expected to near double to $17.3 billion versus $9 billion in the same period.
“Components such as battery packs, chargers, USB cables, connectors, inductive coils, magnetics, flexible PCBAs, charger enclosures active and passive components etc. can be manufactured in India within existing capabilities with modest policy support,” said the government’s vision document which envisages India becoming a $300 billion electronics manufacturing powerhouse by 2026 from the current $75 billion.
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It said that India has a production potential of $25 billion worth of components, which is about 12% of the global spend. The electronics industry had earlier proposed a staggered approach on levying basic customs duty on components such as printed circuit boards, batteries, speakers, mechanics, and cables between FY23 and FY26, while advocating stable tariffs.
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