India is already among the technological giants and is further working hard to strengthen its position. The government policies, to make India digital, are proving fruitful. The government has recently announced a customs duty on the import of smartphones. Financial experts are thinking it a good decision. It will not only increase the revenue but will also discourage the import of smartphones to the country.
The real motive behind levying this tax is to encourage the companies to set up their units in the country. This will give financial advantage and will create employment opportunities for many people. This will also prove to be a good decision for advertising “Make in India” movement. This move is to attract the companies like Apple and LG. After the application of this tax, the prices of imported smartphones will rise about 5-10%.
There are many local companies making smartphones in the country. These are enjoying many tax exemptions. These tax exemptions are already tempting the companies to set up units in the country. The Government is of the view that this tax is essential for the country. It will affect only the upper class which uses imported smartphones.
The IT Ministry says that it will not affect the agreement of duty-free trade of electronics. The ministry is also consulting with Attorney General to discuss the matter further. A committee will further analyze the matter. It has members from various ministries and departments.
The ministry has already discussed with Apple for collaboration. It will start making iPhones in the country in 2018. This will make India the third iPhone manufacturing country of the world. Let us wait for 2018 and see what happens.