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.

March 1, 2013 12:52 am 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… Read more »
March 2, 2013 12:42 pm 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… Read more »
March 1, 2013 12:40 am 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… Read more »
February 28, 2013 10:11 pm 10:11 PM

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

February 28, 2013 9:27 pm 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.

February 28, 2013 7:21 pm 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… Read more »
February 28, 2013 6:23 pm 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)

February 28, 2013 6:17 pm 6:17 PM

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

March 1, 2013 12:29 am 12:29 AM

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

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


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