Maharashtra may impose tax on caller tunes

MUMBAI: Setting a hello tune on your mobile may get dear if the Maharashtra government has its way in imposing ‘entertainment tax’on it.

According to the government, these tunes are for entertaining the caller and should be taxed. The mobile companies charge `30 per month rental on caller tunes and `15 to install a new one. “The caller tunes are basically music to entertain a listener and mobile companies charge customers for the same. So, we are planning to levy about 25% entertainment tax on the company,” additional chief secretary for the revenue department, Ramesh Kumar said.

A proposal to this effect has been sent to the finance department for approval. Then it would be presented before the cabinet for the final nod, Mr 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.