The GST Council on Saturday declared new levy on cellphones increasing it from previous 12% to 18%. This increase may affect cellphone industry and result into a decline of the purchase capacity of the consumers and
According to the reports, the decision of increase has been taken to correct the previous tax structure in which the components of cellphone were levied higher than the end product -cellphone itself.
Explaining the logic behind the hike, finance secretary ABP Pandey said, “The mobile manufacturers will do the calculation but it is not simple math of 6% increase…Because of the inverted duty structure, capital was also getting blocked and the cost was being recovered from consumers.”
However, mobile retailers seemed not satisfied with this argument. All India Mobile Retailers Association (AIMRA) stated that the increase of 6% will affect adversely the mobile retail industry and the consumer’s demand will also decline because of this action.
According to the reports, the decision of increase has been taken to correct the previous tax structure in which the components of cellphone were levied higher than the end product -cellphone itself.
Explaining the logic behind the hike, finance secretary ABP Pandey said, “The mobile manufacturers will do the calculation but it is not simple math of 6% increase…Because of the inverted duty structure, capital was also getting blocked and the cost was being recovered from consumers.”
However, mobile retailers seemed not satisfied with this argument. All India Mobile Retailers Association (AIMRA) stated that the increase of 6% will affect adversely the mobile retail industry and the consumer’s demand will also decline because of this action.
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