Smartphones on path of being a luxury?

COLOMBO (News 1st); Mobile phone traders and others in the business say that the cost of smartphones will increase by at least Rs. 80,000 since the Government increased taxes.

The Finance Ministry imposed a surcharge tax on many imported goods yesterday (1). Moreover, Value Added Taxes have also been increased by 4% as a move by the Government to increase it's revenue.

This increase in taxes eventually leads to an increase in prices of goods. 

Traders say that noraml smart phones now cost more than Rs. 55,000 or Rs. 60,000, while they estimate that in the near future, the cost of a phone will go up to Rs. 80,000 or even Rs. 90,000.

Traders also said that customers tend to not to purchase when they are informed of the prices.

Meanwhile, another trader said that a normal phone cover is usually about Rs. 110, however the price has increased up to Rs. 280 or Rs. 300, yet after this move, a phone cover will not be available even for Rs. 400 or Rs. 500.

The government has also increased the telecommunication levy from 11.25% to 15%.