Mobile handset prices may rise by 2-7% due to customs duty hike

Mumbai: The hike in basic customs duty on imported finished goods proposed in the Union Budget for 2020-21 could make mobile handsets costlier by 2-7%, according to industry experts.

While fully imported mobile phones account for a very small portion in the Indian market, the increased duty on components and other ancillaries announced in the budget may have a cascading effect on the selling prices of the handsets, experts believe.

As per budget proposals, duty on chargers will increase to 20% from 15%, while that on motherboards or printed circuit board assembly (PCBA) to 20% from 10%. Duty on other components used in making mobile handsets will also increase in a similar range.