Bangalore: Mobile phones are likely to be a bit cheaper after Finance Minister Pranab Mukherjee announced in his budget speech that there would not be any tax charged for batteries

, chargers and accessories.

Finance Minister said that full exemption from basic customs duty and CVD available for parts, accessories for manufacturing of mobile handsets is extended to parts for manufacture of battery chargers and hand free headphones also. Presently, full exemption from the four percent special additional duty (SAD) of customs is available up to July 6, 2010.

Welcoming the development, Indian Cellular Association (ICA) President, Pankaj Mohindroo said, "Cellular handset makers are pleased, especially on account of the exemption of four percent SAD, which was resulting in working capital blockage. Such exemption signals the government's renewed focus on manufacturing the mobile phone, and now also its parts, components and accessories." Speaking on similar lines, Nokia stated that the Budget has removed the 24 percent import duty on components, raw material imported for manufacturing batteries, chargers and other part and accessories. The will help in attracting more investment in this area and encourage domestic manufacturing of parts and accessories. - Silicon India