With the rapid advancement in the technology area, Smartphones are everywhere now. People are now starting to focus more on smartphones than any other thing. This situation could be hazardous at some point. But the government has started to act by imposing the taxes on smartphones especially to those who are in the selling domain. And when a tax is placed on the sellers of cell phones the size of the cell phone market going to reduce. Which is another bad factor especially when the need for phones is getting bigger.

Sales Tax On Cell Phones

Previously, we used to witness, mobile phones (excluding the smartphones) were being imported and exported at a rapid rate without any obstruction. But as time goes by, the hurdles started to arrive in the buying and selling of phones. The sales tax is the primary and leading hurdle. The entire earth’s governments started to impose sales tax on the buying and selling of cellphones. Initially, it was scarcely very less but as the demand increases, tax started to climb up. And at some point, it surpassed the actual phone price.

Sales Tax On Cell Phones In United States

In the United States, the sales tax differs state-wise. The state has its own policy to put the taxes. If you lived in a state such as Delaware, Montana, Oregon, and New Hampshire, you wouldn’t pay any sales tax. But other than this, you would have to pay the sales tax anywhere from 1.56% to 11% depending upon the cellphone.

When a tax is placed on the sellers of cell phones?

So, when a tax is placed on the sellers of cell phones the size of the cell phone market, the size of the cell phone market decreases, but the price paid by buyers increases. Therefore, increasing the taxes on the seller of cell phones will see a huge decrease in the density of cell phone markets. But this doesn’t end it, the amount a buyer used to pay for buying a phone will be increased with a marginal difference. 

Ending Remarks

From the survey, discussion and proper researching, we have deduced that a no-tax on cell phones is not an option. Because with the rapid advancement, the Government needs to step up and make it sales-tax friendly. But imposing a huge amount of the cell phones is not a good choice, instead, make it friendly like imposing the tax amount with respect to its actual price and brand popularity.

 

 

 

 


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