Mobile phone activation charges halved

Giving a major relief to the mobile phone companies, the government has slashed activation charges on mobile phones from Rs 2,000 to Rs 1,000.
In another major relief measure, the Central Board of Revenue (CBR) has allowed adjustment of input tax on almost all items consumed by registered people, most significantly diesel used in generators for producing electric power.
The decision of reducing activation charges on mobile phones would be instrumental in increasing the use of cellular phones in the country. This reduction will significantly contribute in the spread of mobile phones into the low-income groups as well as in the rural areas.
It has been hoped 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.
As part of the government's desire and longstanding demand from the industry to implement sales tax in true VAT Mode, it has been proposed to allow adjustment of input tax on almost all items consumed by registered people, most significantly diesel used in generators for producing electric power.