Hyderabad: The mobile companies are not going to pass on the additional burden of increased excise duty on the customers fearing that this could adversely impact their business.

The companies are ready to bear the burden in case there is no rollback in the increased excise duty. However, the mobile device companies want rollback of increased excise duty. The companies fear that any increase in prices will hinder the growth of mobile handset industry.

While presenting the Budget on Thursday, the Finance Minister proposed to increase the excise duty to six percent on mobile phones with market price above Rs 2,000. Currently, excise duty of one percent imposed on mobile handsets. According to an estimate, the mobile handset sales is expected to cross 25 crore by the end of this year.

Speaking to Dainik Jagran, Samsung’s VP-Marketing, Aseem Warsi has said that the FM’s move to increase excise duty is going to hamper the growth of mobile handset market. Warsi expressed hope that the FM will consider rollback of proposed excise duty hike.

The industry is of the view that if the excise duty hike burden is put on the shoulder of the consumers, there will be at least 5 percent increase in the retail prices. As smartphone buyers are mostly youngsters, any increase in the price will hit their buying capacity.

Nitin Pradhan/JPN

Latest News  from Business News Desk