Budget 2012 has brought in some relief for the Indians since the cellphones that are made in India will now get cheaper. The prices of the mobile phones will remain stable as most of the mobile devices are imported and there has been no alteration made in the custom duty on mobile devices. Union Finance Minister of India, Pranab Mukherjee has planned to exempt basic excise duty for the mobile phone memory card parts. This will give some boost to manufacturing of mobile phones in India.
Also, the Union Finance Minister has planned to increase the basic excise duty to 12 per cent which was earlier 10 per cent. This will not affect the prices of the mobile phones as the mobile phone concerns will continue to pay the same excise duty of 1 per cent under the special group of coal, precious metal jewelry and fertilizers.
In India, most of the handsets and mobile devices are imported and that would not affect the price of the mobile phones.
Mobile phone companies like LG, Samsung, and Nokia that assemble the parts of feature phones or entry-level models in India have seemed to be profited from this shift by the government.
Pranab’s move of exempting the excise duty for the mobile phone memory card parts aims at promoting the manufacturing of mobile phones/handsets in India.
Via: Mobileindian