6 pc excise duty for all mobile phones: FM

In a bid to spur domestic manufacturing, the government today said the excise duties on mobile handsets will be restructured to six per cent for all categories.

"To encourage domestic production of mobile handsets (which has declined) and reduce the dependence on imports (which have increased), I propose to restructure the excise duties for all categories of mobile handsets," Finance Minister P Chidambaram said while presenting the Interim Budget 2014-15.

"The rates will be six per cent with CENVAT credit or one cent without CENVAT credit," he added.

"I would like to thank Finance Minister for the attention to mobile handset segment. We have to go through the fine print before coming to any conclusion," Indian Cellular Association National President Pankaj Mohindroo said in his reaction.

Electronic component manufacturer association ELCINA said the announcement does not look promising for domestic firms.

"At first glance, I think it is not going to be a disincentive to trading. One per cent credit without CENVAT credit is too less," ELCINA Secretary General Rajoo Goel said.

As part of last year's budget, the government had raised the excise duty to six per cent on handsets priced above Rs 2,000.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Faith is the opium of the masses, so Indians get addicted

    India is a nation of 1.27 billion. Let that number sink in, with all its zeroes. That’s a lot of people.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Public good research in agriculture

Public good research in agriculture is designed to promote risk ...

Zehra Naqvi

To hell and back

Here is a book that makes you wish there were ...

Bubbles Sabharwal

When your real & reel life heroes are the same

ALL the world’s a stage and we all are merely ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture