India

Maharashtra eyes cellular services for revenue

The revenue hungry Maharashtra government has turned its eye on the mobile ringtones and caller tunes offered by the cellular operators. The state government is mulling on levying entertainment tax on these services. Even cyber cafés and video theatres will also brought under the ambit of this tax.

Narayan Rane, revenue minister of Maharashtra today announced these plans in a press conference. The above plan forms some of the recommendations made to increase the revenue of the state. Rane said, « The time has come to review the definition of entertainment devices. These service also offer entertainment to the consumers. Hence a tax can be levied on these services and items. A proposal to levy the tax will be sent to the government and government will take an appropriate decision. »

Caller tunes form a major part of the value added services (VAS) offered by almost each cellular operator in country. If the proposal comes into reality, Maharashtra will be the first state in the country to levy surcharge on mobile VAS.

A two day conference of the divisional commissioners and district collectors concluded today. Rane was briefing about decisions taken in the meeting.

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