Mobile Phone prices reduced by Samsung, Nokia and LG to put a check on the grey market
May 5, 2010
Leading mobile phone companies Samsung, Nokia and LG have reduced the prices of their handset in states of West Bengal, Delhi and Maharashtra so as to put a check on the growth of grey market. This step has also been taken by the companies so as to make sure that there are standard retail prices across the country in spite of the fact that these states have higher tax rates.
For the first time these mobile phone companies came together to reduce their prices up to 8% so that the customers will stop going to the grey markets due to high VAT. Pankaj Mohindroo, the national president of mobile phone industry Indian Cellular Association (ICA) stated that the industry of mobile phone has come together on its own cost to save the legal trade from the grey market capitulation. It was also estimated by association that high VAT had made an impact on the legitimate trade worth more than RS.4500 crore in Delhi, West Bengal and Maharashtra alone.
