Mobile phone costs will go up in India.
With the Budget 2017-18 bringing in a Special Additional Duty (SAD) of two per cent on PCBs or Printed Circuit Boards used in the manufacture of mobile phones, the prices of cellphones are likely to increase. In a bid to push local manufacturing in the country, the government in its budget for the 2017-18 fiscal year has proposed a two percent special additional duty on import of PCBs, the key components of the mobile phones. The government is aiming at companies locally manufacturing the PCBs and provide “adequate protection to domestic industry.” Though the move is likely to result in a marginal increase in the price of handsets, as these components are mostly imported. It is worth noting that PCBs alone contribute to 25-30 percent of the cost of the smartphones. At this moment, it is not certain how the levied duty on PCBs will affect prices of mobile phones in the country. Notably, there has been some back and forth on the Special Additional Duty applicable on the po...