India imposed 10 percent tax on imports of smartphone components

Vastavam web: India has imposed a 10 percent tax on imports of key smartphone components, including populated printed circuit boards (PCBs), as it moves to step up local assembly of mobile devices in the world’s second-biggest smartphone market.A customs duty of 10 percent was imposed on PCBs that are already populated with components such as memory and chips, according to a federal government notification issued on Monday.A 10 percent customs tax was also imposed on the imports of camera modules for phones and connectors.

The taxes are part of Prime Minister Narendra Modi’s phased manufacturing programme (PMP), a plan unveiled in 2016 to step up local value addition every year in smartphone manufacturing.Modi, who wants to turn India into a manufacturing powerhouse like neighbouring China, has gradually raised import taxes on low-value components such as batteries, chargers and earphones, pushing Indian firms to assemble them.