Union Finance Minister Nirmala Sitharaman will now present her 9th Union Budget in a few minutes. Like every budget, this time too people are keeping an eye on the announcements related to taxes and exemptions, because due to these decisions many everyday items become cheaper or more expensive. This time the special discussion may be about the smartphone sector.
Before the budget, many industry organizations have demanded changes in custom duty from the government, so that Make in India can be further strengthened. This is expected to provide relief to companies manufacturing in India. iPhones made in India are now being exported all over the world. In such a situation, the question is whether the tax on iPhones sold in India will be reduced or not, its decision will be revealed in the budget speech.
How much is the tax on smartphones?
At present the government imposes 18% GST on smartphones. At the same time, 28% GST is applicable on power banks, chargers and other accessories. 18% GST is also imposed on selling second hand smartphones. The industry is demanding that the government should give some relief in GST in the budget to promote smartphone sales. Experts also say that in the coming few months, the prices of smartphones are going to increase due to expensive chips, in such a situation the reduction in GST can give some relief to the customers.
Will smartphones become more expensive?
Some experts believe that there may be an increase in the prices of smartphones in the coming times. This is because companies making chips for smartphones are now focusing more on making chips and processors for AI. In such a situation, smartphone companies are facing shortage of chips. According to experts, its impact will be visible on the market in the next few months. Brands have now shifted focus from Rs 9,999 phones to the Rs 15,000 and above segment.
Premium segment becomes priority of companies
Companies that were once known for budget phones, like Xiaomi and Realme, are also now launching premium smartphones. The reason for this is clear that companies get more profits in this segment.
Why are manufacturing costs increasing?
The prices of important parts used in making smartphones like processor, battery and display have increased by 10 to 15 percent. This can have a direct impact on the final price of the phone.
Increasing demand for AI increases pressure
Now the demand for AI features in smartphones and other electronic devices is increasing rapidly. This requires extra chips. At the same time, due to shortage of memory chips in the market, their prices have also increased.
What answer will be found in the budget?
What relief the government will provide regarding smartphone and electronics manufacturing or whether the pressure on prices will increase further, its full disclosure is going to be made in the Union Budget 2026. There is only a little time left for the budget to start.
