Smartphones To Get More Expensive As 2021 Budget Removes Key Duty Exemptions
The finance minister revealed this during her budget speech where she mentioned that they¡¯re withdrawing a few exemptions on parts and chargers with some parts of smartphones moving from nil rate to 2.5 percent.
Finance Minister Nirmala Sitharam revealed this year¡¯s Union Budget, highlighting a set of new easements and restrictions to help our nation recuperate from the pandemic that resulted in a massive dent on the Indian economy.
ANI
While she did present the budget using a swanky new made-in-India tablet, the budget isn¡¯t really positive for the tech scene in India.
And in case you were planning on purchasing a new smartphone it's better you do it soon as the Union Budget 2021 has made the decision to remove the exemption on parts of chargers and smartphones in order to promote the Make-in-India movement.
The finance minister revealed this during her budget speech where she mentioned that they¡¯re withdrawing a few exemptions on parts and chargers with some parts of smartphones moving from nil rate to 2.5 percent. The elimination of exemption would affect specific parts like the Printed Circuit Board Assembly (PCBA), Camera module, and connectors.
There has been an increase in the rate for PCBAs found in chargers or adapters with power increasing from 10 percent to 15 percent. It also announced that the Centre is going to cut the basic customs duty rate on nylon chips and nylon fibre. It also plans on increasing custom duty on parts of mobile chargers from nil to ten percent.
The rise in smartphone prices due to the removal of exemptions is surely a bummer since 2020 showed us how important phones have become to help us stay connected, help kids study, among other things. It¡¯ll be interesting to see how big of an impact we¡¯ll see on smartphone prices.
Reuters
Not just smartphones, but it looks like refrigerators and air conditioners are also expected to get more expensive as the 2021 Budget has altered custom duty for parts in these appliances -- parts like compressors where duty will be charged at the rate of 15 percent instead of 12.5 percent.
Moreover, specified insulated wires and cables would also be charged customs duty at the rate of 10 percent, compared to just 7.5 percent earlier.
What do you think about the 2021 Union Budget? Tell us in the comments below.
