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The
move by the Government implied a hike in prices of
mobile phones,
which would be to be taxed at 12.5 per cent with effect
from September 8.
At presetn, 4 per cent VAT is levied on the cell phones
in the state.
Terming the decision as 'oversight', Indian Cellular
Association (ICA) President Pankaj Mohindroo said,
"The West Bengal government should sincerely
consider reversing it because the benefits which have
accrued to government, consumer, trade and industry
because of rationalisation of tax are too important to
be ignored."
The Karnataka Government had also removed certain
electronic goods including cell phones, cordless phones
and headphones from the list of IT products taxable at 4
per cent VAT rate and instead have imposed 12.5 per cent
tax.
Analyst feels that the move of hiking the Value Added
Tax (VAT) would result in increased price of the mobiles
which is detrimental for the industry.
"Consumers will now prefer buying from phones from
the grey market. The WB govt will surely not like the
grey market to emerge again," Mohindroo said.
Source
: Economic Times - Gurgaon, Haryana, India, dated
01/09/2008
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