Excise duty on mobile phones above Rs 2000 raised to 6%

NEW DELHI: The Government today announced that the excise duty on imported or domestically manufactured mobiles priced at more than Rs 2000 is being raised to six per cent.

According to Finance Minister P Chidambaram, about 70 per cent of imported mobile phones and about 60 per cent of domestically manufactured mobile phones are priced at Rs 2000 or below.

Mobile phones currently enjoy a concessional excise duty of one per cent. Chidambaram said in his budget speech for 2013-14 that he does not propose to change that in the case of low-priced mobile phones.

IESA President PVG Menon and Chairman Satya Gupta said the higher Excise Duty on mobile phones above Rs 2000 is a blow to domestic mobile handset makers, as excise duty on instruments priced above Rs 2,000 has been raised to 6 per cent from the earlier rate of 1 per cent.