Mobile Phones To Cost More As Govt Imposes Import Duty On Display, Touch Panels

Smartphones and feature phones in India are set to become costlier due to a newly imposed 10% import duty on display and touch panels. The move is in line with efforts to increase the local production of such components in the country.

report by TOI highlights the new import duty, mentioning an additional cess that increases it to an effective 11%. As per sources cited in the report, the new taxation can lead to an increase of anywhere between 1.5% and 5% in the retail cost of the smartphones.

This is because display and touch panels are some of the most crucial components of a smartphone. Among all the components used in their manufacturing, display and touch panel account for more than 15% cost of the device, at times going up to as much as 25% of its total cost.

The new import duty has not been introduced abruptly and instead was brought to the industry in a phased manner. It was originally slated to come into effect from April last year. These components were some of the main elements in the phased-manufacturing programme (PMP) earmarked for mobile phones.

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