Business

Cellular phones: appeal against high ST

By Our Special Correspondent

CHENNAI APRIL 8. In the recent State budget, the Tamil Nadu Government has sought to increase the sales tax on cellular phones to 20 per cent from 8 per cent at present. Many States have adopted the opposite course of reducing the ST rate on handsets to popularise the mobile phone habit and also quite importantly to boost legal sales.

The last point is noteworthy inasmuch as there is a huge grey market for the handsets resulting in an all round revenue leakage.

Making these points in a memorandum to the State Government, the Southern India Rajasthani Chamber of commerce and Industry points out that with the recent ST levy, Tamil Nadu will have the highest tax on cellphones.

The Central Government has actually removed the CVD on cellular phones this year. The chamber urges the Government to reconsider the ST levy on handsets.

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