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The reduction in the activation charges on mobile phones ie from Rs 2000 to Rs 1000 would be applicable from July 1, 2004.
Sources told Business Recorder here on Sunday that the new rate of activation charges would be applicable from new financial year.
Providing a major relief to the mobile phones companies, the government announced in budget that the activation charges on mobile phones have been halved ie from Rs 2000 to Rs 1000.
The decision of reducing activation charges would be instrumental in increasing the use of cellular phones in the country. This reduction will significantly contribute in the spread of this means of communications into the low-income groups as well.
The tax managers are confident that cellular phone companies will follow this example set by the government, for promotion of this sector, by rationalising their airtime charges to encourage greater usage among their subscribers.

Copyright Business Recorder, 2004

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