The Interim Budget has some good news and some bad for consumers. Two-wheelers and cars will be cheaper while low-end mobile phones will be a bit more expensive due to changes in excise duty.
Auto-makers, including Tata Motors, Hyundai, Maruti Suzuki and Honda Cars India, have already announced that they would be passing on the benefits of the excise duty cut to the consumer.
Mobile phones that cost less than Rs. 2,000 are set to cost more after Mr. Chidambaram’s decision to levy a uniform excise duty on phones across price bands.
Mobile phones that cost less than Rs. 2,000 were earlier levied an excise duty of 1 per cent. They will now be levied an excise duty of 6 per cent. Industry analysts said this could translate into a 4-5 per cent hike. “This will add to the costs of entry-level phones less than Rs. 2,000 and is likely to add to the burden of consumers of low-end phones,” said P. Balaji, Managing Director Nokia India.
Published - February 18, 2014 12:21 am IST
