ICEA urges Govt to cut import duty on mobile phones, says import no threat any more

New Delhi: India’s apex electronics makers body has urged the government to reduce the 20% basic customs duty on mobile phones, because of large scale manufacturing of handsets in India, imports are no longer a threat and the industry has the strength to face competition.

“We are suggesting that import duty should be capped on either 20% or Rs 4000 of the bill value of a device, whichever is higher. This is because in high-end phones, import duty is creating a large arbitrage and promoting the grey market of these devices,” a senior industry executive told ET.

He added that the proposal of reduction of GST on mobiles from 18% to the earlier 12% is a must to curb the emerging grey market and put the mobile within the reach of the common man.