GST could lead to 25% price hike for smartphones

The demand for mobile handsets in the country has remained flat over the past four years

Consumers may have to spend more for smartphones from the next financial year as the additional duty proposed in the Budget will lead to price hikes. A two per cent special additional duty, which will be imposed on printed circuit boards (PCBs) from April 1, is expected to increase the prices of handsets by up to two per cent.

PCBs are imported from China and Taiwan because no manufacturing plant has been set up locally. According to Tarun Pathak, analyst, Counterpoint Research, in 2016, PCBs worth nearly Rs 40,000 crore ($6 billion) had been imported. On average, they account for