Collection problems could bog down state plans to charge a Rs. 300 annual levy on mobile handsets as planned from next January, which works out to less than 85 cents a day.
The new charge, meant to compensate the government for Value Added Tax (VAT) revenue lost due to smuggled cellular handsets entering the market, will call in an estimated Rs.
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600 million annually to state coffers. rn
rnBut problems will crop up, when the taxman starts calling in dues from pre paid customers, who currently account for over 60 percent of cellular subscriber base.rn
rnThe prepaid card subscribers pay a marginally higher rate for incoming and outgoing calls. In return, they dont pay a monthly rental nor receive a bill.
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rnThe new levy will require network operators, assigned the task of collecting the annual payment on a quarterly basis, with the job of finding new ways to charge the prepaid user. rn
rnOperators say imposing the charge and collecting the dues is going to tax their financial and other capital r