Budget 2013: Mobile Prices are going to hike as excise duty jumps to 6%

Budget 2013 has just presented by the Finance Minister P. Chidambaram, and there is  unwelcome news dropped in mobile phones court. The news is that the mobile phones are going to get costlier from now as the excise duty on mobiles is increasing by 6%  costs above Rs.2,000.

Earlier the excise duty on all the phones was only 1%, and transition of 1% to 6% directly tends to raise the mobile phone’s rates.


During the budgetary speech,  P. Chidambaram said, “I do not propose to change that in the case of low priced mobile phones. However, on mobile phones priced at more than Rs 2,000, I propose to raise the duty to six per cent.”

After the budget, many mobile makers gave their sad reviews and one them is homegrown Lava stated,” this increase in excise duty will surely hike the mobile rates and now we have not left with any other option rather than increasing the phone rates.

Further Asim Warsi, VP, Samsung Mobile also 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,” said Asim Warsi, VP, Samsung Mobile.

Well, this decision of the govt. is  not predictable that why it became so necessary to raise the excise duty at this stage because the mobiles phones have overshadowed the country from past 1 decade or maybe it is due to the reason increasing craze of smartphones in the crowd (as all costs above 2,000). This might not affect the foreign manufacturers but can badly affect the domestic one because they earn mostly from India.

Govt. should rethink on their decision and reduce the excise duty to some extent because the rise from 1% to 6% is quite much.

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