Mobile phones may become cheaper as duty on chargers cut
Mobile handsets could be marginally cheaper with the Finance Minister today announcing tax exemptions for chargers, batteries and accessories.india Updated: Feb 26, 2010 21:02 IST
Mobile handsets could be marginally cheaper with the Finance Minister today announcing tax exemptions for chargers, batteries and accessories.
Finance Minister Pranab Mukherjee said full exemption from basic customs duty and CVD available for parts, accessories for manufacturing of mobile handsets is extended to parts for manufacture of battery chargers and hand free headphones also.
Full exemption from the four per cent special additional duty (SAD) of customs is presently available up to July 6, 2010.
Exemption from basic customs duty, CVD and SAD on parts of battery chargers and hand-free headphones is available until March 2011, he said.
Indian Cellular Association (ICA), an industry body, welcomed the development.
Its national president Pankaj Mohindroo said, "Cellular handset makers are pleased, especially on account of the exemption of 4 per cent SAD, which was resulting in working capital blockage. Such exemption signals the government’s renewed focus on manufacturing the mobile phone, and now also its parts, components and accessories."
Country's number one mobile handset seller Nokia said the Budget has removed the 24 per cent import duty on components, raw material imported for manufacturing batteries, chargers and other part and accessories. The will attract more investment in this area and encourage domestic manufacturing of parts and accessories.