Hey people! You’re staying at home, right? Well, better stay indoors because baahar toh sabki sooji mil rahi hai! LOL! Well, while staying indoors, our cellphones are the biggest savior, isn’t it? However, if you are planning to buy one as soon as the delivery starts, you need to read this.
Soon smartphones will burn a bigger hole in your pocket. Nahi, nahi, phone aag nahi pakad rahe! They are just getting a tad more expensive because? Tax revisions babay!
This has come after the implementation of the higher rate of goods and services tax from April 1, 2020. It was announced after GST council held its meeting last month and eventually raised the GST on mobile phones from 12% to 18%.
Smartphone manufacturers including Samsung, Oppo, Realme, Vivo, and Xiaomi have hiked the prices of their phones. As per a prominent financial daily, Samsung, which has increased prices by up to ₹6,000 on its handsets, has also conveyed its move to its retail partners and distributors.
Global VP of Xiaomi and MD of Xiaomi India Manu Kumar had also tweeted about the hike to the Mi community and said, “Mi fans, #GST on mobile phones has increased by 50% from 12% to 18%. After much deliberation & in keeping with #Xiaomi policy of maintaining <5% margin on our hardware products, we will be increasing prices of our products. New prices will be effective immediately. Thank you!”
“Today we are announcing that Realme smartphones will have to boost the prices up for the first time since 2018. It’s never easy for Realme as a new brand to keep providing the latest technologies across different price segments in India,” said Realme. The Chinese smartphone brand holds the 4th largest market share in the smartphone industry in India and is quite popular amongst the cost-sensitive lower-end buyers.
COVID-19 pandemic and the economic slowdown have already impacted the smartphone industry as according to a report by ENTRACKR, “Soon after the new GST rate was announced, industry bodies including ICEA and AIMRA had demanded an immediate rollback amid experiencing disruption due to the COVID-19 outbreak.”