The European Commission is in discussions about a proposal that could see an import tax of up to 14% imposed on mobile phones with a built-in GPS receiver or TV functionality.

According to sources, the move could increase the price of mobile devices with either one, or both, features by as much as 25%, which could really hurt the mobile industry quite a bit.

It is thought that the tax on GPS-enabled devices is due to increasing pressure from European device manufacturers in Germany and the Netherlands. It sounds like an excuse, not an actual reason.

The import tax is heavily opposed by the European Information and Communications Technology Association, which is backed by companies including Apple, Motorola and LG Electronics, for very obvious reasons. It could devastate an industry that is already struggling, and hopefully this will get voted down quickly.