Mobile retail shops in Maharashtra will down their shutters today as a mark of protest against the State government’s recent decision to increase the VAT imposed on mobile handset from 4% to 12.5%.

“Maharashtra’s mobile traders have been one of the most successful and significant channels for the proliferation of mobility in the state. As the largest mobile handset market in India, the state’s contribution to the industry, government and consumers is undisputed. A regressive step like this will severely cripple the growth of organised mobile retail trade in the state, in addition to leading to a resurgence of grey channel,” said Maharashtra Mobile Trade Association president Tushar Avalani. “We expect sales through the legal channels to fall drastically from the current 1 million units a month,” he added.

The retailers plan to lead a protest march to the Maharashtra VAT Commissioners’ office on Thursday seeking rollback of the levy.