Cut in VAT makes cell phones cheaper in Telangana

​Hyderabad: Good news for phone users. The prices of cell phones are set to come down in Telangana, as the VAT on them has been reduced from 14.5 per cent to 5 per cent.

The State Legislative Assembly on Wednesday adopted the Value Added Tax (VAT) Amendment Bill, seeking to reduce VAT on cell phones.

The bill was introduced by Minister T Srinivas Yadav. Congress, Bharatiya Janata Party and Telugu Desam Party members welcomed the Bill.

Moving the Bill, Srinivas Yadav said the government had taken this decision, following the demonetisation of high value currency notes, with a view to encourage cashless transactions.

The government was making efforts to ensure that digitalisation 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, Telangana Rashtra Samithi member and Vice-Chairman of Mission Bhageeratha, participating in the discussion, complimented the government for reducing VAT on cell phones.

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 was a good step.