UT Admn. to levy 12.5 % VAT on tobacco from tomorrow

Chandigarh, May 21 (UNI) The Chandigarh Administration has decided to levy VAT at the rate of 12.5 per cent on tobacco in all its forms and products from tomorrow.

Earlier there was no tax on tobacco items. Terry towels have been brought in the list of 4 % taxable items, whereas there was no tax on them earlier.

The Administration decided to withdraw concessional levy of tax at the rate of 4 % against Form 'D' to State/Central Government Departments, including PGI, Chandigarh. Earlier they were not charged as per the existing VAT rates applicable and they paid 4 % VAT only on all items. Now onwards they will also have to pay the VAT as applicable in the union territory of Chandigarh .

UNI