'Extend I-T sops for mobile manufacturers to 10 years'

The Associated Chambers of Commerce and Industry of India (Assocham) has urged the government to extend income tax waiver benefits to mobile-handset manufacturers in backward areas from 5 years to 10 years, in order to help the industry meet 100 per cent local demand for cellphones.

In a representation submitted to communications, commerce and finance ministries, the chamber sought that VAT, which varies between 6 per cent and 14 per cent, should also be lowered to less than 4 per cent to bring telecommunication facility for the aam admi in the countryside at affordable rates.

It also demanded withdrawal of safeguard Customs duty of 1 per cent on mobile handsets with immediate effect to help broad base their sales at reasonable prices.

Accessibility and availability of mobile phones can be accomplished, as intended by the government, provided income tax waivers are extended to their manufacturers in backward areas for another 5 years.