Finance Minister Proposes to Raise Duty on Mobile Phone Priced above Rs.2000

The Indian Finance Minister P Chidambaram today proposed to raise duty on mobile phones priced at more than Rs 2,000 to 6 per cent. So mobile phones that cost more than Rs 2,000 would be getting more expensive in next financial year (from April 2013).

Mobile Phone Tax 2013“Mobile phones enjoy a concessional excise duty of 1 per cent and I do not propose to change that in the case of low priced mobile phones,” the Finance Minister said in its Budget presentation.About 70 per cent of imported mobile phones and about 60 per cent of domestically manufactured mobile phones are priced at Rs 2,000 or below, he added.

The Finance Minister also proposed appropriate measures for the semiconductor and electronics sector, including zero customs duty. The India Electronics and Semiconductor Association (IESA) wanted the Budget to focus on building the domestic electronics industry, which is a important item for national agenda. IESA had sought “speedy implementation” of GST and rationalised indirect tax structure of 12 per cent GST (8 per cent excise and 4 per cent VAT) on electronics manufacturing value chain.

Semiconductors are used in radio, computers and telephones, while semiconductor-based electronic components include transistors, solar cells and diodes among others.

As a reader what do you think on this move do let us know via comments.

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  • Kaushik March 1, 2013 1:43 pm

    Aam admi k 6 k 6 jeb me hath dalegi sarkar. Kamse kam 4000 tak k mobile price level ko hath nai lagana chaiye tha. Basic comn features hai jisme. We need to change dis govt. Neithr bjp nor Congress. I have to bring AAP

  • down March 1, 2013 1:03 pm

    If your party gives back all the money it looted from the taxpayer, we wont need to poay any tax for a few years atleast. As it is mobiles (and electronics) are much costlier in India than abroad.

  • soniraj March 1, 2013 8:54 am

    Will have impact on medium range phones, Mostly Nokia ASHA. All other phones are imported. Local mfg (Karbonn, Micromax, Lava, etc) are the losers. Videshi lobby ki jeet hai yeh. Try to read between the lines.

  • U914MTS March 1, 2013 12:52 am

    I don’t think this is much big. Those who can afford such phones can easily contribute 6% more. Had seen many people changing mobile frequently, so mostly those do so, frequently will get hit much, and they can afford it.

    Also I think it is temporary. Our countries finances are in bad shape and gov: need this money temporarily. It won’t be much for those who can afford it. A lit bit more from our side for our nations overall wellbeing. Individually it will be a small sum, but collectively it will be big amount for developmental programmes, provided it is spent prudently.

    Look at temporary tax for those earning above1cr annually. So similarly this will also be temporary measure.

    • sri March 2, 2013 12:42 pm

      Answer to my Questions in my comments. For what purpose this govt need more money and how much they want. Just try to think about it. 20 years ago no spectrum to earn money, no iron or bauxite to earn this money, no land selling for real estate to earn this money. What this govt. did for the people.The stupid minister says 6% import tax, do you that it will be more than 12% when the mobile comes out from Customs duty. These worst leaders roam around the world with our money bring every thing from airport without customs issues and taxes, a common man who cant go abroad cant import one mobile from abroad for personal use without customs duty? That too this customs duty (6%+6% additional customs charges equals 12%)is not on the price you bought, it will be on the MRP price of it in India (even if you provide actual invoice and payment receipt). What do we do if finally the seller cheats by putting a locked one, blacklisted IMEI, or some garbage in parcel? There is always a risk but FM should have minimum sense on importing a single mobile. I am feeling like living in Talibans ruling INDIA.

  • U914MTS March 1, 2013 12:40 am

    MTS offers a decent phone for 800 Rs with 2500 rs talk time (To any network with validity of 3months). Just a suggestion for an additional mobile .

    Also their rates 30ps/min is also attractive. If not looking for cheap go for samsung gsm+cdma dual sim phone costing 5000 rs. Which means aove 2000 rs thus attracting tax. But check for coverage first in your commuting areas.

    Are there any MTS users form kerala here. Other than those who had taken to MTS on my recommendation, not seen many with MTS number.

    It would have been nice if someone start some group so that MTS users, who are a minority in kerala, could be of help for each other on various MTS related issues.

    Twitter – U914MTS (just created, but don’t think I would be regular, so better someone else take an initiative who is regular to social networking)

  • Nasim February 28, 2013 10:11 pm

    Congress ki PM, FM ko ise kya lena dena parta hai.
    Un sabi ko to mobile free me diye jate hai.

  • avis February 28, 2013 9:27 pm

    You stupid congress govt, everything ok what abt the free roaming from 1st march? Yet no word on it. It’s tomorrow march 1st.

  • sri February 28, 2013 7:21 pm

    From the last 13 years (IT boom era), Indian govt collected lacs of crores rupees from the people and companies in the form of taxes..service charges..etc, but the govt didnt spend for any great projects, the people lives are not better than earlier, new roads and maintenance went on to tollgates and private firms, sold most of indian land to private companies, earned from spectrum, collected taxes than earlier, got money by selling iron and bauxite, cut subsidies…countless money. But what the govt did to people of india. Each and every indian has to see those accounts publicly. India witnessing the worst PM , FM and their team after the independence. We have to end the Congress Era in INDIA. No option.

  • jax_ February 28, 2013 6:23 pm

    This is bad thing! This move is not favourable for us. I regret that MPs waste money and we the people paid for them. This is bad. bad. bad. i’ll not vote for congress. (besides i dont like them)

  • Stephen February 28, 2013 6:17 pm

    whats next… Taxes to Use facebook.. Twitter.. watsapp!!!

    • themask007 March 1, 2013 12:29 am

      Its already been taxed. Ahh 0.2 Education cess also applicable.

      Try Activating any data plan. Enjoy the tax era Friend.

  • themask007 February 28, 2013 6:10 pm

    I am happy with my i9000 Galaxy S.

    Thanks to congress for wonderful world of mahngai.
    When ! When! When! Will be the Election.

    I am dieing to cast my vote this time.

    • SS February 28, 2013 9:04 pm

      Hey, whom are you going to vote next? NDA? Ya, that’s the only choice left with us, hope they would be much better than current government.

  • Kadwasach February 28, 2013 5:54 pm

    GDP OF 2013 WILL BE NOW -10%
    Congratulations !

  • piyush February 28, 2013 5:54 pm

    the excise duty is applicable for companies manufacturing the handset in India, like Samsung and Nokia. It will not affect companies that import handsets like Lava, Micromax, Spice etc to name a few.

  • AsitPaul, Tripura February 28, 2013 5:17 pm

    Govt now pushing us to use china mobile below Rs 2,000.
    Saare Jahan Se Mehengaa,
    Hindustan Humara!!!

  • SS February 28, 2013 4:49 pm

    Great! now Cell phones! Now we could hardly find any sector where there is no price hike.
    Well Done Congress!

    It is now important to end this 9 year misrule. hope next year we could find a brand new government of other party

    • Ripudaman Singh February 28, 2013 10:31 pm

      Agar Congress Kuaan hai toh BJP khaai hai,
      Will vote for Aam Aadmi Party.

      Kejriwal is the real life Naayak!

    • Sunil Yadav March 1, 2013 10:58 am

      yes, U R right.

  • saurabh February 28, 2013 4:40 pm

    menhgai dayan khaye jat hai..

  • sachin February 28, 2013 4:34 pm

    Congress haye haye… Budget ki wajah se poora din barbaad ho gaya

  • Somu, Purnea, Bihar February 28, 2013 4:12 pm

    Jitna dam barhana hai, barhate jao..
    Paisa jayga public ka jayga, Sarkar na nahi na jayga!!!
    Usko free me milega mobile.

  • Nikhil Verma February 28, 2013 4:08 pm

    WTF…
    Wrong Move From Finance Minister…
    Already Indian Telecom Has Raised The Price Of Mobile Tarrifs And Packs And Now They Are Increasing Mobile Phone’s Price….Bad Bad Thing.

  • Tharun George February 28, 2013 3:58 pm

    Looks like golden age of Mobile in India is over. Mobile tariff sky rocked and now Mobile cost too.