Cell phones exempted from countervailing duty

The government on Thursday announced an exemption of cellular phones and radio pagers from countervailing duty, while increasing customs duty on these products to 10 per cent from 5 per cent.

"The use of cellular phones is increasing by leaps and bounds, but import through unauthorised channels is a matter of concern. I, therefore, propose to exempt phones and pagers from CVD," Finance Minister Yashwant Sinha said while presenting the Union Budget in Parliament on Thursday.

The basic customs duty is, however, being increased to 10 per cent from 5 per cent, he said.

In addition, the benefit of carry forward and set-off of past losses in case of mergers of companies owning industrial undertakings has been extended to firms providing telecom services and eligible for deduction under section 80-1A.

The move, Sinha said, would encourage growth in the telecom sector, which was undergoing a phase of rapid consolidation and expansion.

PTI

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