Mobile phone parts, power banks, and imported raw silk will now cost higher as finance minister Nirmala Sitharaman today proposed an increase in customs duty.
In her Union Budget 2021 speech, Nirmala Sitharaman announced a 2.5 per cent customs duty on certain mobile phone parts and power banks. She added that the customs duty on gold and silver will be rationalised.
Nirmala Sitharaman also said that the customs duty on leather items and finished synthetic gemstones will be increased.
Notably, in the previous budget also Sitharaman had hiked customs duty on products like medical equipment, fans, lamps, refrigerators, toys, cigarettes, etc.
Earlier, on November 11, the Union Cabinet had approved the Production-Linked Incentive (PLI) scheme for 10 sectors including pharmaceuticals, telecom and networking products, automobiles and auto components, food products, solar modules, textile, white goods, speciality steel, and advanced chemistry cell battery.
This scheme was launched with the aim to encourage local manufacturing and to discourage importing goods from abroad.