Currently, a mobile plays such an important role in one's life that, due to technological advancements, it has become difficult to use mobile phones. In fact, many people do not wish to buy new smartphones as frequently as previously. Therefore, the government has sent indications regarding tax relief in the mobile market, which might very well change mobile life in the country.
Understanding Tax Relief and Why It Is Needed?
Tax relief means the government reducing or exempting taxes on a particular sector. Due to comparatively high taxation on importation and production of mobile phones, market prices go up, and the strain on the consumer goes up, in turn, decreasing sales. This has made the government consider reducing these taxes to enable the devices to be more affordable to the people.
What Types of Changes Are Effective in Boosting Sales?
As per the sources, the government may favor VAT reduction, customs duties, and other tax rates on the importation of mobile phones. The exempt part of tax would be greater on mid-range and budget phones since consumers of the country demand mostly from that segment. Such action may cut prices from brands such as Xiaomi and Oppo or Vivo, reputed from China, or South Korea's Samsung.
Opportunities for Indigenous Manufacturers
Tax relief looks like a wonderful opportunity, especially for imported phones and also for Indian mobile manufacturing companies like Walton, Symphony, etc., which will now be able to competitively price their phones in the local market and further push their sales numbers and job opportunities in the market.
Positive effects on Consumers and Dealers
Tax relief will result in reduced prices of mobile handsets, and this would generate interest among consumers in using the latest handsets. Conversely, it will also result in increased sales volume of the mobile dealers and retailers. In addition, a rise in sales is perceived in other online shopping sites like Daraz, Pickaboo, or various offline showrooms.
The tax relief initiative by the government-to-the-mobile-phone sector is commendable as it makes technology affordable for everyone, but also has far-reaching economic impacts on the country. This timely decision, according to analysts, will prove to be very significant for the growth of the mobile sector.
You can also read: Infinix Hot 60 Pro+: Awarded the Guinness World Record for Thinness as the World's Thinnest 3D Curved Display Smartphone
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