Budget 2012: Brace yourself for costlier PCs, mobiles and laptops

As the Union Budget 2012 wheeled to an end, yesterday, one the nation’s most followed events drew collective reactions from all quarters of the society, since this is one event, which invariably affects everyone - one way or the other. The tech industry, being no exception to this rule was in for a mixed bag of goodies. For starters, as a Times of India report confirms, post Budget 2012 buying personal computing gadgets and accessories, including desktops, laptops, tablets, printers, UPS and mobile phones is going to be a costly affair - all thanks to a 2 percent hike in the excise duty, taking it to 12 percent. Quoting S Rajendran, Chief Marketing Officer of Acer India, the report states, “T_he prices of all our PCs will rise by 2%. A Rs 25,000 PC will now cost an extra Rs 500._” 

Does this budget fit your wallet? (Image credit: Getty Images)

All’s not bad. If owning an LED, LCD TV was on the cards, and you have been waiting for the ‘right time’, then it is now. According to a Deloitte report, the Union Budget 2012 has offered full exemption from basic customs duty on LED, LCD panels. However, here comes the spoiler. Reportedly, fully exempting LED, LCD panels from basic customs duty will have little effect, since already there is no custom duty for imports from Japan and Korea, countries from where major brands, like LG, Samsung, Panasonic and Videocon largely get their TV panels from. The Union Budget 2012, while having fully exempted LCD, LED TV panels from basic custom duty, has levied upon these products - an inflated excise duty. Result? The existing prices are going to shoot up by 2 - 3 percent. As a result, if you now go to the market to buy a 32-inch LCD TV, you will have to shell out Rs.800 more, than what you previously would have to - and Rs.1,200 more, if what you’re buying is a 32-inch LED TV. 

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So, while buying a mobile phone will be an expensive affair, paying for the bills, later will be no merciful, either. A raise in the service tax to 12 percent will mean your mobile bill will be higher, than it was before, considering that the operators will try to shift the 12 percent tax onto the subscribers. Quoting Mr. Sanjay Kapoor, CEO, Bharti Airtel, a Hindu Businessline report states that, “The rise in service tax from 10 per cent to 12 per cent will increase the cost of services to customers and lead to inflationary pressures which can potentially impact the profit and loss of telecom companies.” Cable operators and DTH service providers, too will pass on the increased service tax burden down to their consumers.

To get a better perspective of what the Union Budget 2012 has in store for the tech world, read the post-budget reactions.