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Budget Explainer: Smartphones, headphones, TVs- What may get cheaper, expensive from April 1

14 Feb 20221 min read
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It’s been almost two weeks since the finance minister presented the Union Budget. A few of the announcements in the budget speech focused on giving domestic manufacturing further boost, especially of electronics components. As per US-based accounting firm Grant Thornton, the impact of the manufacturing along with proposed custom duties could make electronics items expensive or cheaper from April 1, 2022. Here we take a look at why you may have to pay more or less on smartphones, headphones and more:
Contents

Smartphones: Likely to get cheaper

The government has provided custom duty concessions from 5 to 12.5% to parts of the transformer of mobile phone chargers, the camera lens of the mobile camera module and other items. So the manufacturing cost of making smartphones will go down and chances are the brands may pass on this benefit to consumers.

Smartwatches, fitness bands: Likely to get cheaper

Some parts of smartwatches will continue to get custom duty exemption till March 31, 2023. This will give cost benefits to manufacturers and could lead to price drops in smartwatches.

Wireless earbuds: Likely to get expensive

The import duty on parts used in manufacturing has been increased and this could lead to an increase in production costs. Consumers may have to pay more for wireless earbuds, neckband headphones and other similar gadgets.

Premium headphones: Likely to get expensive

Direct import of headphones will now lead to 20% higher duty which means that the consumers could end up paying more for them.

Refrigerators: Likely to get expensive

The import duty on parts that are used in compressors has been increased. This means that refrigerators are likely to cost more in the country.

When will the price changes may come into effect

Starting April 1, the new announcements will come into effect. Depending on how -- when and if -- brands pass on the likely benefits, you may have to pay more or less on electronics items.

This article was originally published on Gadgets Now.

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