New Delhi: Mobile phones, laptops and desktops to become costlier as the Goods and Services Tax will come into effect on July 1.
Finance Minister Arun Jaitley, has grouped the commodities under seven categories of tax—zero, 5, 12, 18 and 28 percent, according to a report by Deccan Chronicle.
The Goods and Services Tax Council has decided to keep laptops and desktops at a model rate tax of 18 percent, compared to the current tax levy of 14-15 percent. Other products such as printers and monitors will be taxed at 28 percent.
Moreover, most of the mobile phones may also get expensive by 4-5 percent after the GST rate is fixed at 12 percent. Locally manufacture devices which currently enjoy low tax rates, will cost more with the rates coming into effect.
About 80 percent of the 59 million phones sold in the country in the January-March quarter were locally manufactured, as per a report of market researcher firm Counterpoint.
Experts suggest that government will have to initiate incentives by July 1 to ensure government’s vision such as Make in India for contract manufacturers like Foxconn to remain in work.