Gujarat bows down to trade bodies, relaxes VAT on many items

Gandhinagar, July 19 (UNI) Within four months of implementation of Value Added Tax (VAT) in the state, the Gujarat Government reduced VAT rates on over 20 items for the second time today in less than four months.

Ever since VAT came into force in the state from April 1, 2006, the government had reduced the VAT rates on nearly 40 items on April 29, apparently bowing down to various lobbyists.

Urban Development Minister I K Jadeja and Minister of State for Finance Saurabh Patel said the rates have been reduced or totally exempted, keeping in view the representations made by traders and trade organisations to make it simple and transparent.

VAT has been totally withdrawn from standalone units engaged in yarn twisting so that they could compete with composite mills. That on polyester textiles fabrics processors has been reduced from 2.0 to 0.5 per cent.

The tax on trade rubber, yellow and white anti-static agents, mostly used as raw materials in and refractory ceramic fibres, has been reduced from 12.5 to 4.0 per cent.

The government has also exempted registered traders buying agricultural produces from commission agents totally from any tax.

VAT on bricks made of solid wastes, rubber balloons (children's toy) and Sankheda furniture (identified with that crafted at Sankheda in central Gujarat) has been reduced from 12.5 to 4.0 per cent, as 4.0 per cent VAT on saree falls has been totally withdrawn.

The Ministers said the representations made by other trade organisations are under consideration of the government and ''appropriate decision'' would be taken by the Cabinet Sub-Committee at its next meeting.

UNI VKC MAZ MIR HT2147