VAT cut on CFL, direct subsidy on cotton, mustard

Chandigarh, Mar 21 (UNI) The Haryana government today reduced Value Added Tax (VAT) on compact fluorescent lamps (CFL) and other energy saving devices and also announced direct subsidy on cotton and mustard seeds.

Making the announcements in the state assembly, Finance Minister Birender Singh said VAT on CFL and other energy saving devices had been slashed from 12.5 per cent to four per cent to encourage conservation of power in the state.

The government would give a direct subsidy of Rs 2,000 per quintal on cotton and Rs 800 per quintal on mustard, he said during his reply to the discussion on the budget proposals.

The minister said the government had already reduced the VAT rate from 12.5 per cent to four per cent in case of pump sets below five horse power, honey, buttons, fly ash bricks, katha, paper and plastic cups, toys, desi ghee, candle, industrial tools, woods and timber.

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