Union Budget 2015_ Mobiles and Tablets Just Got Costlier

7/26/2019 Union Budget 2015_ Mobiles and Tablets Just Got Costlier

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Union Budget 2015: Mobiles and Tablets just got costlier

HomeMobile PhonesUnion Budget 2015: Mobiles and Tablets just got costlierReported by Zara Ali Mobile PhonesLast Updated: March 1, 2015 at 4:17 pm 11

Mobile phones and tablets are set to become expensive as the excise duty on these devices has been increased. The Indian government has proposed an increase onthe import cost of these devices to 12.5% from existing 6%, in its Union Budget. According to many analysts and industry insiders, the reason behind the increase isto support the domestic manufacturers of these devices, such as Micromax, Lava, Celkonetc.

Excise duty structure for mobile handsets including cellular phones is being changed from 1% without Cenvat credit or 6% with Cenvat credit to 1%without Cenvat credit or 12.5% with Cenvat credit. NCCD of 1% on mobile handsets including cellular phone, remains unchanged, as stated in theprinted copy of the Union Budget, which was presented by the finance minister, Arun Jaitley on Saturday.

Many analysts also pointed out, that the Budget also implied a jump of 4-5 percent in importing cost for manufacturers who import handsets into India, which wouldcause a direct impact on the consumers. For example, if a phone costs Rs 10,000, the import cost comprises about Rs 6,000 in the total value. Now, the import costwill be going up by another Rs 360, which will be charged from buyers.

Lava International, which constitutes a fine share in the Indian smartphone market, said in a statement toEconomic Timesthat the change in the dutywill lead to price hike on its devices. We will have to increase prices by say 4-5%, said co-founder and Chairman and Managing Director Hari OmRai. We will take a call on the exact increase and since when it will get into effect soon, he added.

Handset makers like Samsung, Lava, Micromax, Intex,Xiaomiand others imported around 64.3 million devices in October-December quarter, according to IDC,which tracked their record on a quarterly basis.

The conclusion to this hike in the excise duty is that, now the consumers would have to shell out extra money for buying mobiles and tablets. The Union Budget2015 also caused a similar impact on the mobile phone tariffs, computers and other digital products such as cameras.

Story first published on: February 28, 2015 at 11:33 pm

Union Budget 2015
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Zara Ali

Zara Ali who loves to explore different beats, right from Technology to Lifestyle. She earned her degree in English Journalism from IIMC (Indian Institute of MassCommunication). Largely off the beaten path, questions of existence and a dash of humor in everyday life are the excursions that keep her ticking for writing moreand more.

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Union Budget 2015: Indian Telecom Industrys issues not addressed says COAIUnion Budget 2015: Service tax increases to 14%, will using cell phones getcostlier?

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Oni Ray - KolkataMarch 1, 2015 6:57 pm, 6:57 PM

Phones more expensive with extra import duties and bigger phone/broadband bills with extra service tax for good measure (raised from 12 to 14%). TheEducation and Special Higher Education (SHC) surcharges will go up proportionately as well, depending as they do on the service tax itself. (Overalltaxation to go up from 12.36% to 14.42% according to my back-of-the-envelope calculations). Achhe Din aa gaye. Congratulations.

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Sudhakar March 1, 2015 7:09 am, 7:09 AM

Everyone :

Please vote under NOTA in all the elections.

Reason :5% tax on AC restaurants not cancelled, increasing the service tax to 14%, increasing the railway fare in the past etc.

ReplyLink
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Matthew George March 1, 2015 11:42 am, 11:42 AM

Why NOTA?Why cant you vote for AK?Take a broom man.

ReplyLink

SS - New DelhiMarch 1, 2015 8:57 pm, 8:57 PM

Is a damn cheater! And has wonderful ability to deceive people. Lets see how the slashed charges affect us. Last time he screwed us with extremepower cuts which earlier was fine. Better not to judge him from kerela. He won because BJP got too arrogant else no where his chance stands.

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krish - vijayawadaMarch 1, 2015 10:39 pm, 10:39 PM

we have seen congress and bjp over the past 60 years. we know what the result was. now lets wait for another 5 years and see what ak willdo for delhi. his performance will decide his future.

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hahahalol!!! For a long time, i havent heard of any politicians name who stands with people and fight against corruption before A.K.Maybe it is a problem with The Hindu news paper.By the way out of curiosity i am asking,how many hours there was power cut in Delhiduring his period?

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From IIT Mechie to Civil Servant(IRS)..From IRS to CM.and What not?.Kejri ji..Awesome profile..fingers crossed!

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shashi - mumbaiMarch 2, 2015 9:05 am, 9:05 AM

Mobile Packs will costlier soon . Do 3-4 month recharge quickly All AVIDO will Surely pass it Service tax effect on consumer.Almost 1.5 rupees will Strong impact on peoples

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kaushik March 2, 2015 10:44 am, 10:44 AM

I have huge hope AK.. Namo is disaster even more than congress :O

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SS - New DelhiMarch 2, 2015 7:03 pm, 7:03 PM

An 1-2 hour and thats a lot when earlier 24 hrs supply was on. Even some areas had longer blackouts. Problem is that electricity indelhi is provided by private firms and for normal home users, the charges are nominal and justifiable even, UP has more or less thesame charges but not even the quarter in quantum of hours they provide electricity.

Corruption isnt AKs first priority now. Developing delhi into a world class city is what he dreams. I also hope that i get free wifi andi will vote for him next time (if there arent more blackouts) :-p

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Union Budget 2015_ Mobiles and Tablets Just Got Costlier

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