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Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in parliament with a few announcements targeted at the massive smartphone market of the country. Although the changes proposed by the Finance Minister could take some time to reflect in the real world, potential smartphone buyers are keen to know how Budget 2024 can affect their pockets. With the iPhone 16 launch right around the corner, Apple fans are hoping to get the new iPhone at a lower price after the government's announcement. But will iPhone prices go down in India? Read further to find out.
Has the government reduced the tax imposed on smartphone purchase?
No. The government of India currently charges 18% Goods and Services Tax (GST) on mobile phones. This means a buyer pays an additional 18% of the phone's price as tax. In the Union Budget 2024, the government did not announce any changes in this tax.
Also read: Will smartphone prices decrease after Budget 2024? Don't expect any major surprise
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What announcement may impact smartphone makers and buyers in India
The government has proposed to bring down the Basic Customs Duty (BCD) on smartphone components that includes printed circuit boards and mobile chargers from 20% to 15%. While 5% reduction may sound like a big deal, in reality, it may not benefit many. Currently, most of the smartphones that are sold in India are manufactured locally and the ones that are imported, may also not see a massive reduction on the bill of materials that could benefit the maker or the buyer.
Will basic iPhone models get cheaper in India after the Union Budget 2024?
No. iPhone prices will not have any effect from reduction of BCD on smartphone components as Apple currently manufactures all the non-Pro iPhone models in India. Thus, there isn't much to expect apart from discounts in regular sales.
Will ‘Pro' iPhone models get a price cut after Union Budget 2024?
The government has proposed to bring down BCD on just printed circuit boards and mobile chargers by 5% and not the smartphone. It is worth noting that Apple does not provide chargers with iPhones and a 5% reduction in bill of material price of printed circuit boards will hardly make a difference to the value of a smartphone that costs well-over ₹1 lakh.
Also read: iPhone 17 series launch may mark end of this model, iPhone 16 series likely to be its last dance
Even if Apple benefits from the reduction, will it pass on?
As mentioned earlier, the reduction of BCD on smartphone components will hardly make a difference on iPhone prices and even if Apple does benefit, it will be too minimal to pass it on to individual customers.
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