Jharkhand govt implements VAT

Ranchi, Apr 1 (UNI) The Jharkhand government has issued notification for the implementation of Value Added Tax(VAT) with effect from today.

A government spokesman said the concerned department has issued 14 notifications in this regard.

The government, however, has extended the operation of existing road permits up to April 30 with the implementation of VAT.

For the business community the government has also extended the operation of input tax credit for a month and necessary notifications were issued for the purpose.

The government said no tax would be levied on foodgrains, pulses, coarse grains, flour, moida and suji till March, 2007.

The spokesman said practically there would be only two slabs of taxes under VAT. A uniform four per cent on products of common use and 12.5 per cent on other goods as against the 17 different slabs at present.

The government apprehended a loss of about Rs 140 crore next year because of the implementation of VAT.

However, since the new tax has appreciably reduced evasion in several other states including Asom and Orissa, the Jharkhand government was keeping its fingers crossed too, the spokesman added.

Finance Minister Raghubir Das had released a long list of products used by the common people, which have been exempted from purview of the taxes at a press conference recently. The list includes salt, coal, wood and bangles.

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