Chinese smartphone establishments evaded tax of Rs 9,000 Crore

Giant smartphone establishments such as Oppo, Vivo, Xiaomi and PC maker Lenovo are under probe

New Delhi – The Union Ministry of State for Electronics and Information Technology of India shared data in the Rajya Sabha about the Chinese establishments manufacturing mobile phones and PC’s have evaded customs duty and goods and services tax worth Rs 9,000 Crore in the last 5 years. These establishments include giant establishments like Oppo, Vivo, Xiaomi and Lenovo. The annual turnover of Chinese smartphone establishments in India is more than Rs 1.5 Lakh Crore.

According to the Ministry’s data, during the period from 2017 to 2023, Chinese establishments defrauded customs duty worth Rs 9,000 Crore. Only Rs 1,630 Crore that is 18% have been recovered from them so far. A ‘show cause’ notice has been issued to them in this regard. As per data, Oppo Mobile India, Vivo, Xiaomi has evaded Rs 5,086; 2,923.25; 851.14 Crore in tax, respectively. Out of which Rs 4,403; 2,875; 682.51 Crore was in customs duty and Rs 6,83; 48.25; 168.63 Crore in GST was evaded respectively.

Editorial viewpoint

What is wrong if one thinks that these establishments will learn a lesson only if Indians refrain from buying their smartphones by boycotting such anti-Indian Chinese smartphone and PC makers which are evading taxes ?

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