Kumari Palany & Co

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Import Tax for mobile-phones & laptops up!

Posted on: 26/Jan/2015 5:43:43 PM
Following the closure of the Nokia unit in Sriperumbudur, Chennai, the central government has decided to encourage manufacture of cell phones in the country. Hence, it has decided to increase the Import Tax on mobile phones.

The finance department circles indicate that this may come during the coming budget session.

The import tax on laptop computers is also going up.

The tax increase is likely to be around 3%.  The central government considers that this measure will facilitate more sales of the domestic products.

This tax increase is expected to bring a revenue of Rs. 4000 Crores to the central government.

However, the expert in the fields view that this tax rise on imported makes is not likely to help local manufacturers in a large way to sell their products. They consider that while including the local duties such as VAT, it is very likely that the prices of both domestic & imported products would be somewhat equal.

As the Nokia plant in Chennai has closed down, the companies like Micromax, Lava, and Karbonn are importing some of the spare parts & components from abroad. So, the rise in import duty may affect these companies.