ibnlive » India

Aug 04, 2010 at 08:33pm IST

Maharashtra to impose tax on mobile hello tunes

Mumbai: Setting a hello tune on your mobile is all set to get dear if Maharashtra Government has its way in imposing 'entertainment tax' on it.

According to the government, these tunes basically are for entertaining the caller hence should be taxed. The mobile companies charge Rs 30 per month rental on caller tunes and Rs 15 to install a new one.

"The caller tunes are basically music to entertain a listener and mobile companies charge the customers for the same. So, we are planning to levy about 25 per cent entertainment tax to the company," said Additional Chief Secretary for Revenue Department, Ramesh Kumar.

A proposal to this effect has been sent to the Finance Department for approval. Then it would be presented before the cabinet for final nod, Ramesh Kumar said. Besides caller tunes, the department is also mulling to impose the same entertainment tax on cyber cafes and video parlours to fill government coffers.

"Considering the popularity of cyber cafes and video parlours, we want to bring them under the purview of the Revenue Department," the official said adding so that entertainment tax can be collected from them also.