Union Budget 2021: Smartphones To Witness Surge In Pricing

Nirmal Sitaraman, Financial Minister, Govt of India just concluded the union budget 2021. As expected, there are some new announcements when it comes to the allocation of the budget. The one part that we are interested in when it comes to Union Budget 2021 is the tech industry.

Though there are no major announcements when it comes to the tech or smartphone industry. FM of India has made one announcement, which is likely to drive up the price of smartphones.

According to the announcement, the Govt has added a 2.5 percent tax on some of the parts used in smartphones/mobiles. Do note, these parts had no tax on them before the announcement of the union budget 2021. So, this is likely to drive up the prices of the upcoming smartphones to a certain extent.

As of now, there is no information on the name of the parts that now come under the tax slab. However, this is definitely going to increase the BoM or the bill of materials, which is likely to be passed on to the customers.

You Are Unlikely To Notice The Price Hike

This new bill is likely to reflect on upcoming smartphones, thus, you won't even feel if the price of the phone has gone up due to the new taxation policy on some mobile parts. The already available smartphones might not get a price increase due to this new policy.

Even if there is a hike, it is likely to be an insignificant one, as these parts are likely to be affordable when compared to parts like SoC, display, or even battery, which are already under the tax slab. You can get more information about the union budget 2021 on the official union budget app, available for both Android and iOS devices.

Update: PCBs, connectors, and camera modules will now attract a 2.5 percent tax. On top of that, parts like a printed circuit board, molded plastic for chargers, and adapters' tax have been increased from 10 to 15 percent.