Government raises import tax on some items including Cell Phones, TV!
|iPhone will be more expensive!|
A 42-inch 4K TV sold by online exclusive brands now for about Rs 30,000 will see a price hike of around Rs 1,200 to Rs 1,400. A 65-inch 4K TV sold now for around Rs 2.15 lakh may cost Rs 2.25-2.28 lakh, industry executives said. The extent of the hike will be more for the bigger screens. Similarly, a 20-litre convection microwave costing around Rs 10,000 will become dearer by Rs 500.
Tarun Pathak, an associate director at Counterpoint Research, said the government’s new tax notification, announced late on Thursday, will impact mobile phones companies heavily dependent on imports.
“It will impact Apple the most as the company imports 88% of its devices into India,” he said. “Either this will lead to increase in iPhone prices or force Apple to start assembling more in India.”
On Monday, a delegation of Indian telecoms equipment manufacturers met Finance Minister Arun Jaitley, seeking government help to promote the domestic industry while he prepares the budget for 2018/19.
India’s goods imports in the seven months ending October rose 22% to $256.4 billion from a year earlier, raising concerns among policymakers.