Prices of imported phones, LED panels, beauty care products may rise on custom duty hike | The Economic Times

NEW DELHI: Experts may say it’s a budget aimed at the upcoming elections, but upwardly mobile urban consumers will have to pay more for almost everything they covet— from cranberry juice and iPhones to sunglasses and lipsticks —due to higher customs duty.

Not just the long list of items on which finance minister Arun Jaitley has proposed an increase in customs duty, but all imports will be impacted as he has also proposed a social welfare surcharge of 10% on basic customs duty.

Import duty on a host of beauty and cosmetic products, including make-up preparations, sunscreens, perfumes, hair colours, and manicure and pedicure products, is being doubled to 20%. The move will impact global players such as Sephora, South Koreabased Innisfree, Bobbi Brown, Estee Lauder, and Italy’s Kiko Milano which import majority of their products.

Prices of perfumes, eyewear and cosmetics, “especially premium ones”, is expected to go up by 10-15%,” said Govind Shrikhande, managing director at Department store chain Shoppers Stop, which sells global labels including Bobbi Brown, Mac and Estee Lauder. “A bulk of the sales in products such as high-end perfumes, eyewear and cosmetics are in premium segment which are all imported,” he said.

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