State Government Drastically Cuts VAT on 28 Items
State Government Drastically Cuts VAT on 28 Items
To bring uniformity in the current tax structure, the NDA government, as promised during the election campaign, on Thursday dropped the Value Added Tax (VAT) rates on 28 items including candle, tea, sports items, medical equipment, used cars, road construction equipment and many others essential commodities.
On all of the items in the new schedule, the tax has been dropped from 12.5 percent to a much lower rate of 4 percent, Deputy Chief Minister Sushil Kumar Modi said amidst roaring applause.
“Currently we are concentrating on 28 essential items but in near future more goods will be added to the list that will bring relief to farmers as well as businessmen while providing low rates to the consumers,” Modi said.
Seeds certified by the government entities have been declared completely tax free, he said.
Admitting that the new lower tax rate would initially result in a loss of nearly Rs. 30 crore in the first fiscal year, Modi said that in the long run it would have positive impact on the state economy. “We are committed to bring reforms in the current tax system and would soon form six advisory committees for the six divisions of the commercial taxes made up of prominent businessmen and economists to further give an impetus to the state’s economy,” Modi said.
Soure: patnadaily.com