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Mobile phone price likely to get hiked
Posted on: 03/Mar/2015 2:18:22 PM
In the recent budget announced by the central government, there is an increase in tax rates on mobile phones and laptops that are imported from overseas. This increase is likely to reflect on the price of such gadgets and devices with a hike.
In electronic items, the most of the profit lies with the import. Over 70 per cent of mobile phones sold in India are imported ones. Hence, despite being an Indian product, these mobile phones are somehow connected to import from overseas countries and they obviously rely on the same. The Excise tax was earlier 6 per cent and this has now doubled to 12.5 per cent. Hence mobile companies are forced to impose the price on their products so as to match with the hike in tax.
Companies like Lava or Intex offer smartphones at cheap rates so that people of all levels can have access to it. These companies are now likely to make a hike in price of about 5 per cent. Similarly, Karbonn mobile may increase around 6 to 7 per cent, say sources.
What’s your comment on this hike in tax and its consequence? Comment below.
