Indian Cellular Association has urged Kerala Government to follow the best international practices towards establishment of Electronics System Design & Manufacturing (ESDM) in the wake of it imposing VAT separately on mobile charger.
Mobile charger is treated as an accessory for the purpose of taxation even when it comes as part and parcel of a composite mobile handset pack. In a letter to Chief Minister Oommen Chandy, ICA national president Pankaj Mohindroo has drawn attention to the
unwarranted and detrimental attempt by State’s tax department to treat mobile charger as an independent accessory for the purpose of taxation simply to extract higher taxes from the Industry. And the move comes in light of the fact that it is a well accepted taxation practice internationally that mobile chargers are not taxed separately though they are always accompany mobile phones.
ICA is of the view that such arbitrary actions on part of the state taxation department could dampen the efforts to create a robust
ESDM eco-system in the country. Governments world over do not tax essential accessories differently if they come as one composite pack, he added.