In the interim budget, the Finance Minister has proposed to restructure the excise duties for all categories of mobile handsets which will now be 6 per cent with CENVAT credit or 1 per cent without CENVAT credit. This move will encourage domestic production of mobile handsets (which has declined) and reduce the dependence on imports (which have increased).
Commenting on the move, Pardeep Jain, managing, Karbonn says, ?Firstly we would like to thank the Finance Minister for his focus on encouraging domestic production of mobile devices. By restructuring the excise duties on all categories, the government will encourage local manufacturers to develop indigenous production of mobile devices which will be a positive step towards the consolidation of the sector. At the same time, we also look towards the government for a sustained period of time to build up the domestic mobile ecosystem for which the industry expects continuous policy support. With policy measures like this, the industry will definitely have greater impetus towards intrinsic development which will certainly auger well for the future of the Indian mobility sector.
