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Maharashtra Government's move to impose 12.5 per cent value added tax (VAT) on mobile handsets in the state has not gone well with the mobile industry, as the handset sales have suffered a major jolt. However, Maharashtra, having 47 million mobile uses, reported an increase in its revenue to Rs 70 crore between June 1 and June 10.
The state, with average sales of a million handsets every month, is the largest mobile in the country in terms of revenue and units.

Sales of handsets in the rural areas too were adversely impacted, declining as much as 85 per cent in the reporting period. Meanwhile, mobile manufactures and ICA representatives urged the state government to roll back VAT hike.

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