Union Budget 2018: Increased import taxes to make mobile phones deerer

Finance Minister Arun Jaitley has presented the new budget for the financial year 2018-2019 at the Lok Sabha today. In the midst of all the other major financial and tax reforms, the government has proposed to raise the customs duty on mobile phones from 15 per cent to 20 per cent, thus making mobile phones more expensive than before.

What this means for the technology industry is that smartphone prices are going to be bumped up considerably by next month when the new budget laws are exercised. However, if you were planning to get yourself a new smartphone, then don’t be nervous yet. The new budget reform will make only those smartphones more expensive that come with customs duty on them, i.e. all smartphones that are imported from other countries will suffer from increased prices.

India presently sees budget to expensive flagship smartphones being imported mostly from China, Taiwan and a few other neighbouring countries. As for budget smartphones, a majority of them are manufactured in India. Therefore, those looking to buy a budget smartphone needn’t worry about the revised prices. Popular smartphones from brands such as Xiaomi, Samsung, Motorola and a few others will continue to enjoy tax benefits and retain existing prices.

However, for mid-range to expensive smartphones from brands that do not have a manufacturing plant here in India will see an increase in prices. For example, with the bump in prices, Apple’s iPhone X could see prices rocketing north of the Rs 1 lakh mark even for the base variant. However, Apple’s popular iPhone SE will see no changes to its price tag as it is the only smartphone that Apple manufactures in India.

The new budget is expected to be implemented by 1 April, 2018, which means if you were holding on for the prices on your favourite flagship smartphone to drop, now is the suitable time to get your hands on it.