VAT hike on phone makers won't impact consumers: Xiaomi country manager
The increased value-added tax on mobile phone makers will not impact consumers, Xiaomi Bangladesh Country Manager Ziauddin Chowdhury said today (2 June).
"I believe VAT increases have no impact at the consumer level," he said in a statement. "At the production level, mobile handset manufacturers may see a slight decrease in profit margins, but that too is not be very significant."
He further said, "Most mobile handset manufacturers add around 30% value in Bangladesh, and it doesn't cost much to reach the consumer level. So, in my opinion, there will be no significant impact at the business level either."
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"There were three VAT slabs for mobile phone makers depending on their extent of value addition. The rates were 2%, 5% and 7.5% and the budget proposed to raise those to 4%, 7.5% and 10%, respectively," he added.
