Xiaomi and Redmi raise phone prices to counter GST 50% increase

Xiaomi and Redmi

Xiaomi, a Chinese phone maker, appears to be sitting under pressure and has announced price increases for Mi and Redmi brand phones in the country. The new price is already in effect and the company promises to start updating immediately on Mi.com. The company said that actions were taken after incorporating the government’s recently announced 50% rise in GST. Due to the increase in GST on mobile phones, the current rate has increased from 12% in the last financial year to 18% from April 1, 2020.

The company further informs that the move to raise the price of the phone has taken place after several deliberations, to maintain the company’s policy of having a margin for phones and other hardware products of more than 5%. did. The movement occurred after the GST Board, led by Finance Minister Nirmala Sitharaman, previously raised GST on smartphones from 12% to 18%. The India Cellular and Electronics Association (ICEA) had previously warned that it would be natural to see many mobile phone manufacturers raising the price of national products. It is not clear at this time how much the price will rise, but when combined with the weak rupee against the dollar, the price rise can be 5-10%. ICEA Chair Pankaj Mohindroo told IANS last week that a 6% increase in GST would negatively impact the vision of Digital India. Consumption has been curtailed and will not meet its domestic consumption target of $ 8 billion (Rs. 6,000) by 2025.

The ICEA wrote to the Minister of Finance that the mobile phone sector is already under heavy stress due to supply chain disruptions following the outbreak of the coronavirus in China. Higher GST rates hurt the market. Industry groups said raising the GST was the most inappropriate time.

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Hey there, welcome to the gadgetexpert24.com, I am Rahul Chougule, interested in gadget reviews, tech news and the internet. My mission is to help people to find the best products and know about latest technology news.

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