A PTI report says the India Cellular and Electronics Association (ICEA) has suggested reducing taxes on parts and components and simplifying India’s tariff structure into an easier “3+1 slabs” system. The association says that India’s current tax system is one of the most complicated in the world, which increases manufacturing costs and affects global competitiveness.
In its 2025-26 Budget recommendations, ICEA proposed removing the 2.5% duty on parts such as PCBAs (printed circuit board assemblies), FPCs (flexible printed circuits), camera modules, and connectors to make manufacturing more affordable.
ICEA suggestions for Union Budget
ICEA suggests:
- 0% duty for parts and sub-parts.
- 5% duty for certain parts.
- 10% duty for sub-assemblies and components.
- 15% duty for finished goods.
The association also recommends eliminating the 2.5% duty on inputs for open cells used in TVs to encourage local production. Similarly, it calls for duty-free imports of components for hearable devices to support the growing industry while keeping the current tax system for finished products unchanged.
What ICEA said in its budget: ICEA has said, “Reduce the 2 proposed reducing the 2.5 per cent inputs of PCBA, FPCs, camera modules, and connectors to 0 per cent.”
“India’s current tariff regime is among the most complex globally, with multiple rates (nil, 2.5 per cent, 5 per cent, 7.5 per cent, 10 per cent, and 15 per cent plus surcharges). This complexity, especially on sub-assemblies and components, impacts global competitiveness and export potential,” it noted.
ICEA believes that simplifying tariffs and reducing duties will make India’s manufacturing sector more competitive globally and boost exports.
