Chandigarh, Oct 21 (UNI) The Haryana Cabinet today decided to reduce rate of Central Sales Tax on inter state sales of Maruti vehicles from two per cent to one per cent to provide the company a level playing field in the market.
Maruti Suzuki India Limited had in a representation to the state government pleaded that in view of general reduction in rate of Central Sales Tax from three per cent to two per cent with effect from April 1, 2007, the rate of Central Sales Tax on inter state sales be reduced.
This reduction in tax in the State would be effective from November 1 this year. With this reduction in tax, the buyers of Maruti vehicles would be benefitted to the tune of Rs 140 crore for the remaining period of the current financial year. This benefit would be Rs 200 crore per annum for the subsequent years.
The Cabinet meeting held here was chaired by Chief Minister Bhupinder Singh Hooda.
The Cabinet also decided to reduce rate of tax on barley sprout from 12.5 per cent to four per cent on the recommendation of the State Level Consultative Committee. The decision to reduce tax would benefit to the consumers to the tune of Rs four lakh per annum.
The Cabinet also decided to reduce the rate of VAT on sale of Earthmoving equipment sold to State and Central Government Departments and Union Territories, Public Sector Undertakings and municipal bodies from 12.5 per cent to four per cent. With this reduction, the State exchequer would bear a burden of Rs one crore on the current projected sales.
UNI HS JS1423