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The customs duty on mobile phones has been increased to 15% from 10% in India. This 5% increase will likely be passed on to the customers who will end up having to pay slightly more for the same devices.
Many companies, including Samsung, have set up their manufacturing facilities in India. However, these facilities are primarily manufacturing low-end and mid-range devices. Flagship handsets are normally imported which is why the increased duty will impact the price that the customer pays.
Market analysts predict that the import duty may further rise by another 5% as domestic manufacturers have been calling on the government to increase the tax on foreign companies selling in India.
According to estimates, the price of flagship handsets in the country could go up by 2,000 rupees or $31 as a result of this increased tax, if the impact is passed on to the customers.
Adnan Farooqui is a long-term writer at SamMobile. Based in Pakistan, his interests include technology, finance, Swiss watches and Formula 1. His tendency to write long posts betrays his inclination to being a man of few words.
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