12.5 per cent VAT on Tobacco in Haryana

Chandigarh, Apr 27 (UNI) The Haryana government has decided to levy 12.5 per cent VAT on Tobacco and its products, except 'Bidi and cut Tobacco used in Bidi and Hooka', with effect from tomorrow.

A spokesman for the Excise and Taxation department said all dealers, stockists, wholesellers, distributors, lawyers, bankers, chartered accountants and other concerned had been directed to collect and pay VAT accordingly.

This measure had been taken by the state government in order to compensate some of the loss occurring on account of reduction of Central Sales Tax from 4 per cent to 3 per cent, the spokesman added.

He recalled that levy of 12.5 per cent VAT on tobacco was agreed by all States in the Empowered Committee of State Finance Ministers and had been approved by the Union Government.

UNI