Due to costly phone smuggling, the country's treasury is given Rs. 2400 crore loss

New delhi date. December 14, 2019, Saturday

The government treasury suffered a loss of Rs 2400 crore a year due to smuggling 50 per cent of the ultra-expensive phones sold for Rs 50,000.

Apple and Samsung phones are mainly sold in such a large phone market. Besides, Google Pixel phones are also sold. According to data provided by the Indian Cellular and Electronic Association to the Central Board of Direct Taxes, which is represented by mobile phone companies, a total of Rs 15,000 crore phones are sold in India in this segment, but Rs 8000 is smuggled through smuggling. Since the price of such a phone is more than Rs.

Due to smuggling, the government has to lose Rs 2400 crore every year which includes theft of 12 per cent GST and 20 per cent basic custom duty. The government imposed such duty on such phones to increase the production of such phones in domestic production. But the government's strategy failed because expensive phones were mostly imported.

People buy low-end phones. Due to the high tax rates on such phones, those who are legally imported and brought to the country through smuggling, there is a big difference in price removal from Dubai, Hong Kong and the US, where there is zero tax.

In a letter to the CBIC, the association had pointed out that such phones with all taxes are sold in India for one lakh rupees, while in the foreign market, such phones are sold for Rs. 25 to 30,000 less.

Conversely, smuggling is encouraged. In simple language, smuggled phones in the country do not pay GST or custom duty, hence, the prices of phones being legally called are available at two-thirds less.