Reduce VAT on cell phones: Lobby asks Bengal
March 26th, 2010 - 9:01 pm ICT by IANSKolkata, March 26 (IANS) Handsets manufacturers body Indian Cellular Association (ICA) Friday asked the West Bengal government to adopt a uniform 5 percent value added tax (VAT) on mobile phones.
It said Finance Minister Asim Dasgupta’s proposal in Budget 2010-11 to increase VAT on mobile phones costing more than Rs.3,000 from 4 percent to 12.5 percent would adversely impact their sales in the state.
“We strongly urge the government to adopt a uniform 5 percent VAT on all mobile phones instead of the proposed differential rate. At a uniform 5 percent rate, we expect legitimate sales to be impacted only marginally and the overall mobile handset industry would continue unhindered to touch the projected size of Rs.2,300 crore by 2010-11,” ICA President Pankaj Mohindroo said at a press meet here.
He said revenue collection in the state would decrease due to the split VAT structure.
Also, a higher VAT would lead to an influx of mobile sets from neighbouring states with lower VAT rates.
Assam has a VAT rate on mobile handsets at 5 percent while Bihar, Orissa, Jharkhand have at 4 percent.
Around 8.5 million handsets have been sold in West Bengal this fiscal (2009-10), of which 5.9 million are in the sub-Rs.3,000 category.
- Manufacturing ecosystem, uniform tax rate for handsets called for - Nov 02, 2011
- 'Demand for high-end mobile phones is booming' - Nov 26, 2009
- Nokia to focus on sub-Rs.6,000 category - Oct 31, 2011
- Sops for all in West Bengal budget (Lead) - Mar 22, 2010
- Sharp Business Systems eyes Rs 1,200 crore turnover by 2011-12 - Nov 22, 2010
- Demand for mobile handsets likely to reach 250 mn in 2014 - May 11, 2012
- Gehlot presents populist budget with eye to coming polls - Mar 26, 2012
- Indian mobile handsets market grows 10 percent in 2011 - Mar 01, 2012
- Indian mobile handsets market grows by 3.6 percent in Q3 - Dec 29, 2010
- Lava launches unbreakable phone handset A16 - Dec 22, 2011
- Philips launches Xenium range of mobiles - Sep 07, 2011
- India's mobile phone users spoilt for choice - Jun 05, 2011
- Stricter radiation norms soon for mobile handsets - Jun 05, 2011
- Himachal increases VAT on luxury items - Jul 14, 2010
- Four states cut tax on petro products - Nov 18, 2010
Tags: asim, assam, bihar, crore, dasgupta, differential, differential rate, finance minister, influx, kolkata, legitimate sales, mobile handsets, mobile phones, neighbouring states, orissa, pankaj, rs 2, vat rate, vat rates, west bengal government