Samsung might stop making smartphones leading in India in response to the new tax

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You might expect Samsung for the production of smart phones, leading such as the Galaxy S9 and Galaxy Note 9 in India, and reducing the rate of production of smart phones locally, as well as the reduction of exports of smart phones, if you don’t the Indian government to reconsider its actions last.

Manufacturing program progress in India is the issue here. This program aims to strengthen local manufacturing of components in India was scheduled to enter into force in the month of March of the year 2020, but the government of India has decided to speed things up and now the production of the ingredients listed starting from the month of February next, or will impose a tax of 10% on any imported components.

In this case, one of the imported components is the screen that you can’t Samsung manufacture in India and need to import. As all of you probably know, the companies represent 25% to 30% of the cost of the phone will determine the manufacturing costs significantly if the imposition of the tax on it.

According to reports, Samsung India informed the government of India in the letter that if the imposition of import duties new, they will need to stop the manufacturing of its phones the leading in the country and reducing the rate of production of its smart phones other that belong to the category medium and low.

The company Samsung is currently working on the establishment of a local factory capable of producing AMOLED screens, but will not run it until the month of April of the year 2020. It should be noted that Samsung stopped making TVs in India in the last quarter due to new fees by 5% on the LED screens. It is estimated that the Indian government realizes its role and remove the tax that caused all this controversy.

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