Budget 2013 has arrived and there is bad news for mobile phone industry in India as the excise duty is increasing to six percent.
The excise duty on mobile phones has been raised to six percent for mobile phones costing over Rs 2,000 in Budget 2013-14. The change will be effective from 1st April 2013.
"About 70 per cent of imported mobile phones and about 60 percent of domestically manufactured mobile phones are priced at Rs 2,000 or below," the Finance Minister said in his Budgetary speech.
Currently the excise duty on mobile phones is one percent. For mobile phones under Rs 2,000 it will remain same, but will increase by five percent for phones costing more than Rs. 2,000.
This would mean that if phone is priced at Rs 10,000 currently, the price increase will be Rs 500, similarly Rs 1000 increase for phone costing Rs. 20000 and 1500 for phone costing Rs 30000.
The excise duty on mobile phones has been raised to six percent for mobile phones costing over Rs 2,000 in Budget 2013-14. The change will be effective from 1st April 2013.
"About 70 per cent of imported mobile phones and about 60 percent of domestically manufactured mobile phones are priced at Rs 2,000 or below," the Finance Minister said in his Budgetary speech.
Currently the excise duty on mobile phones is one percent. For mobile phones under Rs 2,000 it will remain same, but will increase by five percent for phones costing more than Rs. 2,000.
This would mean that if phone is priced at Rs 10,000 currently, the price increase will be Rs 500, similarly Rs 1000 increase for phone costing Rs. 20000 and 1500 for phone costing Rs 30000.