A renowned smartphone maker companies Samsung, Xiaomi, Oppo, Gionee, Intex and Lava have admitted that the pricing of smartphones will not be affected once the Goods and Service Tax (GST) implemented in the country.
The execution of GST is believed to have its effect on smartphone pricing along with several consumer-facing sectors, however, the companies assured that “they have taken decision to absorb the effect from the new tax system that come into impact” from July 1.
“There will be no impact on pricing,” Gionee managing director Arvind Vohra stated.
Chinese company Xiaomi and Oppo, Indian smartphone maker Company Lava also give their declaration on no alteration in handset pricing after GST execution in the market. While, South Korean Company Samsung stated that it will not raise the cost of its handsets under GST.
As per the reports, the latest smartphone models may raise by 4-5 per cent after the GST rate was fixed at 12%.
Nokia stated that they are prepared for GST. The company added, “The Nokia 6 and the Nokia 5 prices already take into account the GST tax rates. The GST rollout will not affect the prices of the Nokia phone that have been announced so far.”
However, retailers are uncertain to increase latest products in starting weeks of July due to early market fluctuations GST would lead to.
Two new Nokia models slated to be unveiled in the first two weeks of July are likely to get delayed.