GST on mobile phones: All sectors have high confidence in the federal budget. The smartphone manufacturing sector also hopes to benefit from major changes in government policies. Smartphone makers expect the budget allocation for this sector to increase. In the past, the tariff on cellular phones has been raised to 20 per cent to encourage imports, following the promotion of Macin India products.
However, the Center has reiterated the demand of the Industrial Body India Cellular and Electronics Association to reduce the goods and services tax levied on the mobile sector. They say they have a problem with the 50 per cent tax hike in the mobile sector in March last year. They also hope that the central government will give more impetus to the production and export of electronics under the ‘Make in India’ program.
The mobile business community is urging the government to reduce the GST levied on mobile phones from 18 per cent to 12 per cent. ICEA has recommended Rs 500 crore for setting up better centers for electronics development and Rs 200 crore for mobile design center.