Apple iPhones to get costlier as govt raises import tax on cellphones

Apple imports nearly 88 percent of its devices into the country.

New Delhi: The Government has hiked import duty on smartphones, television sets, microwave, LED lamps and some other electronic items in a bid to protect domestic manufacturers,.

The government decision will hurt smartphone players which are import-dependent.

The notification issued by the Department of Revenue under the Finance Ministry that came late on Thursday said customs duty will go up from 10 percent to 15 percent for mobile handsets.

Apple will be hit the most as the company imports nearly 88 percent of its devices into the country.

“It will either have to increase the price or start assembling more in the country," Tarun Pathak, Associate Director, Mobile Devices and Ecosystems, Counterpoint Research, has said.

Meanwhile, Pankaj Mohindroo, president of the Indian Cellular Association, has said that the tax hike will boost domestic manufacturers who are making about 500 million cellphones a year, more than double the output three years ago.

While Samsung Electronics assembles in India most of the handsets it sells in the country, Apple currently only assembles its iPhone SE models in India and imports its others.

The company has sought a range of incentives and tax relief from the government for it to expand its manufacturing in India, but government officials have said they are unlikely to make exemptions for Apple.

Aside from cellphones, the government also raised the import tax on video cameras to 15 percent from 10 percent and doubled the one on television sets 20 percent.