Budget 2013 impact: Mobile phones set to become costlier

Posted: February 28, 2013 in All category
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There’s bad news for consumers in India. Finance Minister P. Chidambaram has increased the excise duty on mobile phones costing more than Rs. 2,000 from 1 percent to 6 percent.This means that a phone that earlier cost Rs. 10,000 will now cost approximately Rs. 10,495. Phones that earlier cost Rs. 20,000 all now cost approximately Rs. 20,990, while a phone that earlier cost Rs. 30,000, will now cost Rs. 31,485.
Reacting to the news of excise duty increase, Asim Warsi, Vice President, Samsung Mobile said, “The increase in the excise duty on mobile phones will not have a positive impact on the mobile industry and should lead to an increase in prices for end consumers.”
The Finance Minister has however, proposed to increase the duty free allowance for individuals returning from foreign travel. According to the proposed norms, men will be allowed a duty-free allowance of Rs. 50,000, while women will have a duty-free allowance of up to Rs. 100,000.

Coupled with the increase in excise duty on mobiles, the minister seems to have indirectly incentivised purchasing a mobile on your next holiday abroad.

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