Mobile handset prices to go up

Business Report :
The prices of mobile phones are set to increase in the upcoming fiscal as the government proposed raising value-added tax (VAT) on local production of handsets.
From the upcoming fiscal year, there will be 2 per cent VAT for complete local production whereas there is no such tax at present.
There will be 5 per cent VAT for handsets that are produced with at least two components made locally, up from the existing 3 per cent.
There will be 7.5 per cent VAT on handsets that were assembled in the country with all imported components, up from the current 3 per cent.
These would be a further blow to the country’s mobile manufacturing industry which is fighting a battle for survival due to difficulties in opening adequate letters of credit, a massive drop in sales and expansion of the grey market.