Buying a new smartphone or a television set will now take a heavier toll on your pockets as import duty on imported mobile phones, mobile phone parts and television components has gone up.
Finance Minister Arun Jaitley during the annual Union Budget announced a higher import customs duty on imported smartphones. Customs duty, which was earlier 15 percent, has now gone up to 20 percent.
This move, according to India’s finance minister, is to boost jobs in the country – enhancing the government’s ‘Make in India’ initiative.
The Budget also makes imported parts for smartphones and televisions expensive as the import duty for the same has gone up to 15 percent from the previous 10 percent.
It’s not only mobile phones, small gadgets like smartwatches and wearable prices will also go up because of a 10 percent hike on their import duty.
This is a push for more smartphone makers to manufacture in India. Many companies have already started doing that. Companies like Samsung, OnePlus and HMD Global’s Nokia have already joined the Make in India bandwagon with Apple also starting assemble of the iPhone SE in the country.
The hike in the customs duty for mobile parts also means that essential mobile components like printed circuit boards (PCBs) and smartphone camera components become more expensive, and hence the cost will be carried forward to the final product.
Basic customs duty, levied on imports to India, was earlier raised to 15 percent from 10 percent on mobile phones and electric meters last year in December.
Customs duty on microwave ovens, lamps and light fittings was also hiked to 20 percent from 10 percent.