Smart Phone Prices Will Goes Up In India
In present days mobile phone has became the basic need for human life. By using phones we are doing many transactions and we also transfer any kind of information. According to the latest reports, costs of the mobile phones is likely to increase. This is going to be bad news for all the smart phone lovers who are willing to buy new phones in coming months.
According to Arun Jaitley’s financial budget 2017-18 bringing Special Additional Duty (SAD) of two percent on Circuit boards which are used in manufacturing of Mobile phones. Upto now SAD was zero, but this financial year SAD has becoming two percent duty will be imposed on all imported PCBs and Circuit boards.
By considering whole cost of the mobile phone, PCBs cost is nearly 40-50 percent on the mobile. Because of increment in SAD value there will be increase in the total cost of the phone. “We are expecting a one per cent value impact on the price of the mobile, but obviously this is not going to happen overnight. While one per cent might not seem much, if you take into consideration the number of mobile phones being manufactured and sold in India, this duty will translate into a bigger cost for the company,” said Bipin Sapra, Partner – Indirect Tax at EY.
PCB is the main component in mobile phones as well as other electronic devices. The working functionality of the PCB is to boost manufacturing of the parts in india, and these are baby steps that are being taken.