On Tuesday, Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25, with numerous significant announcements for every sector. However, one announcement can be worrying for mobile users and may lead to a further increase in mobile tariffs in the country. The Union Minister announced an increase in the duties of Printed Circuit Board Assemblies (PCBA) on Telecom Equipment. This announcement will directly impact mobile users.
In early July, the country's top three telecom companies - Reliance Jio, Airtel, and Vi - increased the prices of their recharge plans. Now, with the further increase in duties on PCBA for Telecom Equipment, these companies might further raise their plan prices.
The increased costs of telecom equipment may also hinder the progress of 5G rollout. Telecom companies would incur higher operational costs due to the price surge, potentially leading to increased recharge plan prices for customers once again.
Furthermore, the surge in PCBA prices may impede the network expansion efforts of telecom companies and place a greater financial burden on them. Consequently, the rollout of 5G might be adversely affected.
Meanwhile, during her budget speech, she also announced a significant reduction in customs duty on mobile phones, mobile PCBAs, and mobile chargers from 20 percent to 15 percent. Sitharaman emphasised the growth of the Indian mobile industry, highlighting that domestic production has increased threefold, and exports of mobile phones have increased 100-fold over the last six years.
She stated, "With a threefold increase in domestic production and almost 100-fold jump in exports of mobile phones over the last six years, the Indian mobile industry has matured. In the interest of consumers, I now propose to reduce the Basic Customs Duty (BCD) on mobile phones, mobile PCBA, and mobile charger to 15%."
In addition to this, the government is planning to exempt lithium, copper, and cobalt from customs duties, as these minerals are essential for several high-tech industries. Additionally, customs duties on 25 critical minerals will be either eliminated or reduced, which will benefit industries heavily reliant on these resources.
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