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Maha Govt. to hike VAT on mobile phones |
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Mumbai: The Maharashtra Government has increased the sales tax on devices to 12.5 per cent from four per cent, which may result in hike in prices of mobile handsets in the state.
This increase in value added tax (VAT), a kind of sales tax, on mobile phones to 12.5 per cent will come into effect from July 1. As per the analysts, the tax increase would push up the cost of Rs 3,000 mobile handset by Rs 250.
Nokia India Managing Director D Shivakumar said that the increase in tax would lead to a flourishing grey market and the government would suffer substantial revenue losses. He added that with the increase in tax, the mobile phones would become costlier in the state.
The handset maker, along with apex industry body the Indian Cellular Association (ICA), will meet the Maharashtra government this week to oppose the state`s move to increase sales tax on mobile phones.
ICA national president Pankaj Mohindroo stated, "The move is a lose-lose proposition for the government, industry, trade and consumer."
Earlier, some states, especially West Bengal, had proposed to hike the tax on mobile handsets but the move was suspended after the association intervened.
(Posted on : 02/07/2009)
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| Maha Govt. to hike VAT on mobile phones |
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