Budget 2022 Brings Massive Increase in Levy on Import of Mobile Phones

A new levy of up to Rs 16,000 has been proposed on the import of mobile phone handsets through Finance Bill, 2022. According to the Finance Bill, there shall be a mobile handset levy at the rates specified on smartphones of different price categories. Under the proposal, there will be a levy of Rs. 100 per set on a mobile phone with cost and freight (C&F) value of up to $30. The rate of levy per set on mobile phones having a C&F value between $30 and $100 will be 200. The rate of levy per set on mobile phones having a C&F value between $101 and $200 will be 600. Similarly, the rate of levy per set on mobile phones having a C&F value between $201 and $350 will be 1800. The rate of levy per set on mobile phones having a C&F value between $351 and $500 will be 4000. The rate of levy per set on mobile phones having a C&F value between $501 and $700 will be 8000. The rate of levy per set on mobile phones having a C&F value of above $701 will be 16000.   The government has estimated a revenue of Rs. 10 billion from the levy on the import of mobile handsets.