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


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March 1, 2013 1:43 pm 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

March 1, 2013 1:03 pm 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.

March 1, 2013 8:54 am 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.