Mobiles become Costlier in Assam due to Higher Entry Tax
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With a recent increase of entry tax, mobiles and other household items would become costlier in Assam. As per the latest amendment in The Assam Entry Tax Act 2008, the entry tax on the items is increased from the present 4 to 10 percent.
Having considered it necessary in the public interest so to do, the Government of Assam has specified that telecommunication equipment including telephones, mobile phones, pagers and component and parts thereof will attract the increased 10% entry tax.
Not just Mobiles:
Apart from mobiles phones, this 10% Assam entry tax is on other consumer goods such as refrigerators, air coolers, geysers, washing machines, TV sets, DVD players, type writers, Xerox and fax machines, motor cars, motor cycles, elevators, sanity ware and furniture. Common PVC pipes, tubes and fittings, cranes, dumpers and road rollers attract 4% entry tax.
According to Mr. Ravi Kota, Commissioner & Secretary (Finance), Government of Assam, “This increase will stop diversion of trade. By this increase we are expecting to garner ₹40 crore annually.
Assam Entry Tax – Why? Why Not?
The main aim to levy Assam entry tax is to encourage the local industries and provide employment. However, there is a criticism that this law is counter-productive for the industrialization of the state.
Some economists are of the opinion that entry tax is leading to double taxation as the tax paid while entering the state is not VATable, or is not deducted while playing VAT by the unit. Some even feel that entry tax is making the industries of Assam less competitive by increasing its input costs.