Phone by Xiaomi, Samsung, Apple and others to become expensive due to custom duty hike

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The India Cellular and Electronics Association (ICEA) on Friday said that the Indian government has imposed an import duty of 10% on the display and touch panel of smartphones. The customs duty on display of imported phones has been enforced since October 1, 2020. The move has come to encourage the Make movement in India.

With the new customs duty of 10%, smartphones will certainly become more expensive for consumers as most displays and touch panels are imported. The maximum retail price (MRP) of many smartphones from brands such as Apple, Xiaomi, Realme, Huawei, Vivo, Samsung and others will be increased.

“There will be an impact on cell phone prices between 1.5 and 3 percent,” said Pankaj Mohindroo, ICEA National President.

With the 10% customs duty leading to higher phone prices, the government has in a sense asked Indian companies to produce smartphone components within the country to discourage imports.

“In a rare failing, the industry has failed to adequately increase production of display assemblies due to the COVID-19 and NGT embargo. We continue to be fully engaged in the domestic production of sub-assemblies and components. However, now the goal is to take the lion’s share of global markets and not just import substitution, ”Mohindroo said.

As part of the Phased Manufacturing Program (PMP) for cell phones announced in 2016, the government initially imposed a 15% customs duty on: chargers and adapters, battery packs and wired headphones.

Former Finance Minister Nirmala Sitharaman said: “As part of the Make in India initiative, well-defined customs duty rates have been announced for items such as cell phones, electric vehicles and their components. This has ensured a gradual increase in India’s internal value adding capacity. Customs duty rates are being reviewed on electric vehicles and cell phone parts as part of these carefully designed phased production plans. “

The Indian government has imposed a 10% customs duty on displays and touch panels which will make smartphones expensive for shoppers.

News Underline:

  • The Indian government has imposed a 10% import duty on smartphone displays.
  • The hike in customs duty on displays and touch screens will make smartphones expensive.
  • The move came to discourage imports.

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