Budget 2018: What about Smart Phones, Laptops and Television rates? Hike or Drop?

On the whole Budget 2018, which presented on 1^st February, 2018, many reviews from financial, industrial analysts eyeing on the increase of Customs Duty from 15% to 20% on Mobile Phones to encourage the local manufacturers in mobile industry the decision was taken by the Finance Minister Mr. Arun Jaitley while presenting Budget 2018. 

The Customs Duty on the mobile phones was 10% up to 14^th December, 2017 and it was increased up to 15% on with effect from 15^th December, 2017 and issued orders for implementing this by Government of India.  The Customs Duty increased up to 10 to 15% on Mobile accessories like Chargers, Batteries, etc.

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Which Smart Phone rates will increase through the affect of Budget 2018:

Vikash Agarwal, Generam Manager of OnePlus India stated that the decision to increase Customs Duty on mobile phones to encourage local manufacturers of mobile industry.  He also stated that, 85% of units, which belongs our brands are producing locally.  Xiome phones, which are importing to India, are 5% only.  

Mr. Rajesh Agarwal, Associate Founder of Micromax mobiles opined that, there are more opportunities to develop India as Global Hub in manufacturing with the latest decision of Customs Duty increase.  He also opined that, the employment generation and business opportunities will be increased with the effect of Government’s latest decision.

The new tax implemented with immediate effect through announcement of Budget 2018 recently.  All the companies have to re-announce their revised rates in view of hike Customs Duty.  The retail price will be increased by 5% on all the imported mobile phones in this context.  Mr. Pankaj Mahindru stated that, the recent development of Customs Duty increase will be affected on only few brands, which are manufacturing in abroad only.

Mr. Manish Sharma, CEO of Panasonic India stated that, the decision of increase Customs Duty will be resulted to promote “Make in India”.  Mr. Sayyad Tajuddin, CEO of Coolpad India opined that, the price of smart phones, repairing, servicing charges will be increased for costly category with the effect of Import tax increase and the customers have to bear it.  The ICA estimated as, the sales local manufactured phones will be up to 90% among the sales during 2018 year.  

We know that, all the phones, which belongs to iPhone are made in abroad only except iPhone SE.  Even though, Samsung, Motorola, Lenovo, Sony, OnePlus, Vivo, LG, Oppo, Panasonic, Xiome, Gionee, etc brands are assembling their phones in India, but they have to depending on import the spare parts from abroad and some of the Chinese brands are purely depending on imports only.

What about Television rates with the affect of Budget 2018:

Subsequently, the Television rates will hike to some extent.  The Customs Duty, which already have on Television is 7.5% and the tax increased in latest Budget 2018 is 15% on Pannels, which are importing.  Moreover, the Imports Tax is increased from 10% to 15% on LCD, LED, OLED Televisions.  As a result of this, the Television rates will be increased by 5% based on the model.

The local companies are opined that the decision of Government is too good, it would be encouragement for local manufacturing companies.  The affect of price hike will be temporary only and the Government stepped forward with the strategic way.

Tags: budget 2018, highlights, rates, prices, smart phone, television, tv, increase, decrease.