The evasive custom duty has just given the bitter taste to the consumers of the electronic goods in India. The custom duty is just like an extra charge levied on the items that is sellable. The increase in the custom duty by the Government of India on the electronic goods has raised eyebrows for many thinking that it will again pinch their pockets apart from Goods and Service Tax (GST). The decision by the government of increasing the custom duty on electronic items was taken citing the dip GST revenues.
Why custom duty raised in India
The basic customs duty on electronic items like mobile phones and other consumer durable in India have been increased by 10 to 20 percent. The increase in the custom duty will in a way discourage the import of electronic goods while encouraging manufacturing of domestic goods. Amid the falling GST revenues, government could think of increasing the base custom duty on electronic, to meet the expenses and the budget of this financial year.
The government of India aims at promoting ‘Make in India’ initiative and produce the same electronic items here at indigenous locations at half the price of what they are sold in the market. This is the second time in a year that the government of India has raised the prices of smartphones. Earlier, on June 30, the prices for all push button phones and the smartphones was hiked by 10 percent.
List of electronic items with price hiked due to raised custom duty
Microwave ovens, LED lamps, water heaters, television sets, smartphones, projectors, monitors and light fittings are some of the electronic items that are levied with increased custom duty for their sale in India. There has been price hike of minimum 10 percent and maximum of 20 percent .
Smartphones, especially Apple’s iPhone is the worst hit product whose price will now increase in India after the implementation of custom duty. All other smartphone and smart electricity meters are slapped with 15 percent price hike while other items like LED lamps, microwave oven, projector, television sets, water heaters, hair dressing equipment and monitors have increased their prices by 20 percent.