Bihar government reduces VAT on thousands of items

Patna, Mar 31 (UNI) Bihar government today announced reduction of the Value Added Tax (VAT) on thousands of items for uniform taxation system and prevent evasion.

Bihar Deputy Chief Minister, who is also Finance Minister, Sushil Kumar Modi told newspersons here that VAT had been reduced on 99.9 per cent items and the new tax structure would be executed from April three this year.

VAT had been slashed from 12.5 per cent to zero per cent on several items of common use including raw jute, seeds, food grains, fodders, jaggary, house hold articles, handicrafts, salted cooked food and others.

Mr Modi said VAT had been reduced to 4 per cent from 12.5 per cent on other articles, including indigenously prepared unbranded salted packed eatables, house hold plastic goods, herbs, pizza, bread, spectacles and its parts and components, torch, transformers, equipment used in medical profession, electrical goods and others.

He said it has been decided to make the tax structure uniform to increase tax realisation.

The Minister admitted vast differences in tax systems in Jharkhand, Bihar and West Bengal and maintained that it was resulting into tax evasion.

Mr Modi said reduction of VAT would ultimately benefit the consumers adding in view of the Centre's policy, tax on petrol, diesel and liquor should not be less than 20 per cent.

However, contrary to this, Jharkhand government was taking only 15 per cent tax resulting into heavy revenue losses to the neighbouring states, specially Bihar, where it was 23 per cent.

As Jharkhand government too had announced implementation uniform of tax structure, the tax on petrol and diesel would be 20 per cent.

He said Bihar government would also consider lowering of tax on these items from 23 to 20 per cent once the Jharkhand government implements new tax structure.

Mr Modi said he would take stern action against the defaulters and appealed to the traders to pay the tax immediately.

UNI RS JYN HS BD1710