Government restores 2 per cent additional duty incentive on mobile phones export

By: |
January 30, 2020 2:29 PM

The duty benefit under the Merchandise Export from India Scheme (MEIS) is effective from January 1 and will be there till March 31, 2020.

According to estimates, mobile phone exports grew from Rs 1,300 crore in 2017-18 to over Rs 25,000 crore at present.According to estimates, mobile phone exports grew from Rs 1,300 crore in 2017-18 to over Rs 25,000 crore at present.

The government has restored 2 per cent additional duty incentive on mobile phones export with a view to boost shipments of the product, according to a notification of the commerce ministry.

The duty benefit under the Merchandise Export from India Scheme (MEIS) is effective from January 1 and will be there till March 31, 2020.

“A 2 per cent additional ad hoc incentive for mobile phones is notified for exports made with let export date from January 1 to March 31, 2020,” the Directorate General of Foreign Trade (DGFT) has said in a notification.

DGFT is an arm of the commerce ministry which deals with issues related to exports and imports.

The directorate on December 7 last year had reduced this export incentive from 4 per cent to 2 per cent.

The India Cellular and Electronics Association (ICEA) had expressed disappointment over cut in the incentive, stating it will lead to massive job losses.

According to estimates, mobile phone exports grew from Rs 1,300 crore in 2017-18 to over Rs 25,000 crore at present.

Under MEIS, the government provides duty benefits depending on product and country.

Rewards under the scheme are payable as percentage of realised free-on-board value and, MEIS duty credit scrip can be transferred or used for payment of a number of duties including the basic customs duty.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Netherland’s SHV buys Neev’s stake in SunSource Energy
2RBI provides Rs 50,000-crore liquidity for extending Covid-19 loans to healthcare
3Loan recasts: Small borrowers get fresh relief from RBI