Your mobile bills are set to get costlier as Union Finance Minister Pranab Mukherjee has proposed an increase of service tax to 12 per cent from the current 10 per cent in his budget presentation in Lok Sabha today.
The hike in service tax would affect more than 800 million pre paid and post mobile subscribers in India.
In simple terms if a subscriber is paying Rs 1,000 per month as mobile bill now, if the proposed service tax is implemented then they would have to shell out Rs 120 every month instead of the current Rs 100 as service tax.
Many telecom operators had recently hiked their tariff rates citing losses. If, the budget proposal related to service tax for FY 2012-13, is excepted it will further push them to increase tariffs to compensate their losses.