Excise duty changes for solar modules inputs, PCB, tobacco and its impact

Additional duty on PCB could put pressure on the already squeezed margins of mobile manufacturers

In a setback to domestic manufacturing of solar modules, the government has imposed a 6% excise duty on inputs for its manufacturing. The excise duty was nil. The countervailing duty on the imports of solar cells and modules, on the other hand, has been decreased to 6% from existing 12.5%.

Similarly, for quite sometime the government is trying to bring in investment in local manufacturing of electronic goods to reduce foreign exchange outgo, a 2% special additional duty on populated printed circuit board (PCB) could put pressure on the already squeezed margins of mobile manufacturers.

PCBs are mostly exported