HP announces 12.5 per cent VAT on cigarette

Shimla, Apr 22 (UNI) The Himachal Pradesh Government has imposed a 12.5 per cent value added tax (VAT) on cigarette and a four per cent VAT on beedi.

A senior state government official, requesting anonymity, told UNI that the decision to this affect was taken by the HP Cabinet recently and it was notified with immediate effect.

Imposition of VAT on the two items would yield additional revenue of about Rs 15 crore to the state exchequer, he said He added that there was no VAT on the two items earlier.

UNI