Out of range: Cellphones are set to become a bit more pricey
Cellphones are set to become a bit more pricey - just a little bit more - thanks to the finance minister slapping a 1% national calamity contingent duty on all handset sales.
Cellphones are set to become a bit more pricey ��� just a little bit more ��� thanks to the finance minister slapping a 1% national calamity contingent duty on all handset sales. But other related telecom segments have attracted Mr Chidambaram's benevolence. Wireless internet connectivity will be more affordable, for example, with data cards being exempted from 16% excise duty, leading to price cuts of Rs 500 upwards.
Modems and set-top boxes (STBs) will also be cheaper as excise and customs duties have been halved to 8% and 5%, respectively, for specified convergence products.
Also, the 7.5% customs duty on STB components has been axed. Only mobile operators were miffed that the FM has ignored their twin demands ��� reduction in multiple levies and lowering of revenue share licence fee to a uniform 6% from the present 6%-10% of adjusted gross revenue ��� for the third time in a row.
The Indian Cellular Association (ICA), the apex body representing all handset companies, said the 1% levy would not impact handset sales. ���Symbolically, it is not a progressive move as it impacts the end-user, the common man. The impact, however, is marginal,��� said Spice Mobile's CEO Kunal Ahooja.
Data cards, whose prices vary between Rs 3,000 and Rs 8,000, enable internet access without landline connections. ���The waiver of excise duty on wireless data cards will shore up broadband usage and penetration levels nationally,��� said ICA national secretary Adarsh Shastri, who is also the distribution head at Samsung.
Explains Dixon Technologies��� chief Sunil Vachani, ���The Budget has corrected the inverted duty structure for STBs. Earlier, the final product could be imported with zero duty, while components attracted 10% import duty. Now they are at par. This would help local manufacturers like us who have been looking to produce STBs.���
Modems and set-top boxes (STBs) will also be cheaper as excise and customs duties have been halved to 8% and 5%, respectively, for specified convergence products.
Also, the 7.5% customs duty on STB components has been axed. Only mobile operators were miffed that the FM has ignored their twin demands ��� reduction in multiple levies and lowering of revenue share licence fee to a uniform 6% from the present 6%-10% of adjusted gross revenue ��� for the third time in a row.
The Indian Cellular Association (ICA), the apex body representing all handset companies, said the 1% levy would not impact handset sales. ���Symbolically, it is not a progressive move as it impacts the end-user, the common man. The impact, however, is marginal,��� said Spice Mobile's CEO Kunal Ahooja.
Data cards, whose prices vary between Rs 3,000 and Rs 8,000, enable internet access without landline connections. ���The waiver of excise duty on wireless data cards will shore up broadband usage and penetration levels nationally,��� said ICA national secretary Adarsh Shastri, who is also the distribution head at Samsung.
Explains Dixon Technologies��� chief Sunil Vachani, ���The Budget has corrected the inverted duty structure for STBs. Earlier, the final product could be imported with zero duty, while components attracted 10% import duty. Now they are at par. This would help local manufacturers like us who have been looking to produce STBs.���
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