Mobile handsets to become costlier

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New Delhi, Mar 2: Mobile handsets will soon become dearer, and for the ones still contemplating to buy now is the time to do it as the prices are expected to go up with the government proposing to levy one per cent excise duty on them.

Mobile handset manufacturers are contemplating a price hike after the Finance Minister imposed an excise duty of one per cent, called National Calamity Contingent Duty, to remove that duty on polyester filament yarn and shift the levy to cellular mobile phones. The proposal may translate into a corresponding one per cent hike in price of mobile handsets. ''We are looking at a revision of prices on the higher side,'' LG Business Group Head (GSM) Anil Arora told the sources.

Handset manufacturers are studying the implications of the new duty and are expected to come out with a decision soon.

''A full impact of this needs to be reviewed and the a decision can be taken,'' Sony Ericsson Product Group Marketing Head Dhiraj Soni said.

''The price rise will not impact the market so much as the manufacturers are aware of the competition. We need to figure out the cost implications and whether they can be borne by us or need to be passed on to the customer,'' Samsung Telecommunications India Ltd Country Head Sunil Dutt said.


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