Cell phones to get cheaper as VAT is cut
Hyderabad: The prices of cell phones are set to come down in Telangana State, as the VAT on them has been reduced from 14.5 per cent to 5 per cent.
The State Legislative Assembly adopted the Value Added Tax (VAT) Amendment Bill on Wednesday seeking to reduce the VAT on cell phones. Animal Husbandry Minister Talasani Srinivas Yadav introduced the Bill in the House and it was passed after a brief discussion. Congress, BJP and TDP members welcomed the Bill.
Moving the Bill earlier, Srinivas Yadav said that the government has taken this decision following the demonetization of big currency notes and to encourage cashless transactions. The government was making efforts to ensure that digitalization was made convenient to the people. With reduction in VAT, the prices of cell phones would come down to some extent in the State, he said.
Vemula Prashant Reddy, TRS member and Vice-Chairman of Mission Bhagiratha, participating in the discussion, complimented the government for reducing VAT on cell phones and said that due to the efforts and decisions of the Chief Minister KCR and IT Minister KTR, four top cell phone companies, Celkon, Micromax, Datavend and Samsung, came to the State, providing employment opportunities to thousands of youngsters. In the backdrop of the decision on cashless transactions, it is necessary for every person to have a cell phone, and hence the reduction of VAT on cell phones is a welcome step, he added.
BJP member G Kishen Reddy, welcoming the Bill, said that the people would get their cell phone recharged even by fasting one day, and there was need to encourage use of cell phones by people. R Krishnaiah (TDP) said that reduction of tax on cell phones is a good step. –NSS