New Delhi, June 30: Prices of mobile handsets are likely to increase in Maharastra from tomorrow as the state government has hiked the sales tax on devices to 12.5 per cent from four per cent now.
The hike in value added tax (VAT), a kind of sales tax, on mobile phones to 12.5 per cent will come into effect from tomorrow.
According to analysts, the tax increase would push up the cost of a Rs 3,000 mobile handset by Rs 250.
The increase in tax would lead to a flourishing grey market and the government would suffer substantial revenue losses, Nokia India Managing Director D Shivakumar said, adding that with the increase in tax, the mobile phones would become costlier in the state.
–PTI