Smartphone Makers May Pay Over ₹3 Trillion in Taxes by End of PLI

Smartphone Makers May Pay Over ₹3 Trillion in Taxes by End of PLI

The article reports that the government expects domestic and international smartphone manufacturers participating in the Production-Linked Incentive (PLI) scheme to contribute over ₹3 trillion (₹3 lakh crore) in total taxes by the time the scheme concludes.

Key Projections and Context

• Total Tax Contribution: The projected ₹3 trillion figure represents the cumulative amount the smartphone manufacturing ecosystem is expected to pay through various taxes (including GST, Customs Duty on components, and Corporate Tax) during the entire duration of the PLI scheme.
• PLI Scheme Success: The substantial tax projection underscores the perceived success of the PLI scheme, which was designed to boost large-scale electronics manufacturing and attract global players to India. The high tax collection figure reflects the massive increase in production volume and turnover achieved by the participating companies.
• Economic Impact: The scheme has successfully transformed India into a major hub for mobile phone manufacturing, leading to increased export volumes and the creation of numerous direct and indirect jobs, which in turn fuels a higher overall tax base for the government.