India announced an attempt to continue to implement the Make In India policy when Apple announced its iPhone in India and announced a tax increase on key components of imported smartphones at the time of the release of the government's annual budget.
According to The Economic Times, India will levy a special additional tax (SAD) of 2% on imported printed circuit boards (PCBs), impacting mobile phone manufacturing costs, according to India's 2017-2018 Annual Budget, and Will cause mobile phone prices to rise at least 1%. gmf32024abtw
The Indian government has made it clear that the PCB tax increase is to protect the domestic PCB manufacturing industry, Ernst & Young (EY) tax expert Bi said that India is to encourage India's PCB manufacturers to move toward the high value-added industries.
Most of the local mobile phone manufacturers in India have said that the marginal cost of the increase in tax increases is expected to be absorbed in order to maintain price competitiveness in the highly competitive Indian market and to be able to drive more investment directly to India.
Indian mobile phone maker Intex Technologies chairman Narendra Bansal said that after the launch of mobile phone prices will continue to fall, so this part of the cost should not be passed on to consumers. India's mobile phone maker Micromax that the incentive effect of the policy is not, the Indian government should come up with more policy expectations to see more policies introduced to protect the local industry growth. msp430f436ipzr
But Sunil Vachani, vice president of India's Dixon Technologies and vice president of the Consumer Electronics and Home Appliances Manufacturers Association (CEAMA), said the industry was not yet ready, and it was not advisable to continue to impose a tax on the Indian government The result is contrary to its hope. He said, PCB accounted for 50 to 60% of the cost of smart phones, tax increases will increase the overall cost of about 1.2%.
Vachani also said that even if the government increased incentives in the value chain, the investment in surface mount technology (SMT) used to assemble PCBs did not grow, as India's tariff on mobile products was still vague.
Industry experts said that most of India's PCBs are imported from abroad, the largest source country that the mainland, and now set up factories in India, PCB assembly only Samsung Electronics (Samsung Electronics) a foreign business, Samsung will become the largest tax policy Whisper.
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