Haryana: Dhabawalas exempted from VAT, relief on petro tax

Chandigarh, Sep 18 (UNI) The Haryana assembly today passed a bill to amend the Haryana Value Added Tax (VAT) Act, 2003 to exempt dhabawalas from VAT and forego tax on increased prices of petrol and diesel.

The Haryana Value Added Tax (Amendment) Bill, 2006 sought an amendment in the Act to put the dhabawalas, tandoorwalas and lohwalas in the Schedule B to exempt them from VAT.

While the dhabawalas, tandoorwalas and lohwalas were exempted from the sales tax under the provisions of the Haryana General Sales Tax Act 1973, they were not extended the same benefit in the Value Added Tax (VAT) Act, said Chief Minister Bhupinder Singh hooda in the Statement of Objects and Reasons of the bill which was passed by a voice vote.

The amendment was carried out in view of repeated representations by the dhabawalas and tandoorwalas.

The amendment would cause an estimated financial implication of Rs 12 crore due to the exemption of tax.

Regarding the amendment with regard to petrol and diesel, he said the latest petro hike effected by the Centre had resulted in resentment among the people and the amendment was made to give relief to them.

The state government had brought an ordinance on June 6 following the petro hike to forego the tax on the enhanced price of the two commodities wherein the amount equal to increase in prices (including duties and levies charged by the Centre) was deleted from the sale price.

UNI MA SBA DS1550