Budget 2024: BCD on mobile phones & chargers: How does it benefit consumers?

Finance Minister Nirmala Sitharaman presented the first Union Budget of Modi 3.0 government during the Monsoon Session of Parliament on Tuesday. It is her 7th consecutive budget. 

The Finance Minister announced a reduction in the basic customs duty (BCD) for mobile phones and mobile chargers to 15%. 

BCD is a tax imposed by the government on imported goods. Let's have a look at what this 15% reduction means and what will happen next?

Fiscal deficit 2024-25 is estimated at 4.9% of GDP. The aim is to reach the deficit below 4.5%, says Finance Minister Nirmala Sitharaman

BCD on mobile phones and mobile PCBS and mobile chargers to be reduced by 15%

The government also proposes to set up a venture capital fund… pic.twitter.com/SJdJvPSVME

— OTV (@otvnews) July 23, 2024

Previously, if a mobile phone costing Rs 7,000 was imported with a BCD of 20%, the importer had to pay Rs 1,400 (20% of Rs 7,000) as tax. 

With the new reduced BCD of 15%, the tax would now be Rs 1,050 (15% of Rs 7,000). This reduction makes it cheaper for importers to bring mobile phones into the country.

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This move is aimed at benefiting phone users by potentially reducing the prices of imported mobile phones and chargers.