HomeFinance NewsUnion Budget 2020: Govt proposes to increase customs duty on electronic and household items to boost Make in India

Union Budget 2020: Govt proposes to increase customs duty on electronic and household items to boost Make in India

In a bid to promote 'Make in India' and to boost domestic manufacturing, the Narendra Modi government has proposed changes in custom duty rates for several electronic and household items.

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By Priya Sheth  February 1, 2020, 4:18:41 PM IST (Published)

Union Budget 2020: Govt proposes to increase customs duty on electronic and household items to boost Make in India
In a bid to promote 'Make in India' and to boost domestic manufacturing, the Narendra Modi government has proposed changes in custom duty rates for several electronic and household items.


This means that ‘Made in India’ products will become more competitive as compared to imported items. It also means that companies will have to rely more heavily on locally manufactured components to make their products affordable.

Some big changes made by the government are in the household and electrical appliances space. The government has increased customs duty for household goods and appliances from 10 percent to 20 percent.

These good includes the likes of tableware, kitchenware, vacuum flasks, brooms and hand sieves. Customs duty for electrical appliances like fans, grinders/mixers, water heaters, ovens, cookers, toaster, heaters and irons has also been hiked from 10 percent to 20 percent.

Customs duty of goods like footwear has been hiked from 25 percent to 35 percent and duty for parts of footwear has also been hiked from 15 percent to 20 percent. Also, customs duty for furniture goods like lamps, mattresses have been increased from 20 to 25 percent and stationery items will also be taxed at 20 percent from 10 percent earlier.

A big increase in customs duty has been in the toys space. This is a bid to stop cheap imports from countries like China. The customs duty has increased to a whopping 60 percent from a 20 percent rate earlier.

Customs duty has been increased for mobile phones as well, especially in the assembly and display space. The customs duty for the display panel and touch assembly will be 10 percent. This was exempt from customs duty earlier.

Similar is the case of the vibrator or ringer component of mobile phones which will face a customs duty of 10 percent. The customs duty on PCBA of mobile phones which is the Printed Circuit Board Assembly has been increased to 20 percent versus 10 percent earlier.