Budget 2022: Customs Duty Rates Being Calibrated to Strengthen Domestic Manufacturing of Wearables

Finance Minister Nirmala Sitharaman on Tuesday said customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of products like wearables and electronic smart meters.

Presenting the Union Budget 2022-23, Sitharaman said duty concessions are also being given on certain items to enable domestic manufacturing of high-growth electronic goods.

The finance minister noted that electronic manufacturing has been growing rapidly.

"Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters," she added.

She said duty concessions are also being given to parts of transformer of mobile phone chargers, camera lens of mobile camera module, and certain other items.

"This will enable domestic manufacturing of high-growth electronic items," she added.

Among other announcements made during the Union Budget session, a cryptocurrency tax of 30 percent was also introduced. "There has been a phenomenal increase in transactions in virtual digital assets. The magnitude and frequency of these transactions are made it imperative to provide for a specified tax regime accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 percent," said Sitharaman.

"No deduction in respect of any expenditure or elements shall be allowed while computing such income except the cost of acquisition for loss from the transfer of virtual digital assets cannot be set off against any other income," she added.

Sitharaman announced that India will get its Central Bank Digital Currency (CBDC) this year, which will be regulated by the Reserve Bank of India (RBI).

Sitharaman also said that e-passports with embedded chip and futuristic technology will be rolled out in 2022-23 to help citizens in their overseas travel. Additionally, a Drone Shakti initiative was also announced. It will help commercialise the use of drones in different industries and will be promoted with the help of startups.