States refuse to include mobile phones under declared goods category1 min read . Updated: 11 May 2013, 05:54 PM IST
States are, in-principle, opposed to the declared goods category that forces them to levy lower tax rates
Mussoorie: Indian states on Friday did not agree to include mobile phones and tablet computers under the declared goods category that attracts a lower tax rate of 5%, saying that it will make a dent in their revenue.
Sushil Modi, chairman of the empowered committee of state finance ministers, said that states are, in-principle, opposed to the declared goods category that forces them to levy lower tax rates. “Only seven states levy a higher tax of around 13-14% on mobile phones and tablets."
Union communications minister Kapil Sibal had written to the panel for inclusion of these items under the declared goods category.
The panel questioned such a proposal by the centre after it slapped excise duty on mobile phones priced above ₹ 2,000 in the Union budget 2013.
“On the one hand, the centre raised excise duty on certain category of mobile phones in this year’s budget and, on the other, it expects states to levy lower tax rates," Modi said.
Items such as cereals and liquefied petroleum gas are included in the declared goods category.
The centre has already agreed to states’ demand of doing away with declared goods category under GST.