Household goods exempted from VAT in UP

Lucknow, Jan 4 (UNI) In a major relief to common households in the state, the Uttar Pradesh government today announced to exempt several items from the Value Added Tax (VAT) regime, including daily use commodities and other household goods.

The decision was taken in the state cabinet meeting here this afternoon.

The government has also reduced VAT on pulses from four to one per cent, which is half per cent less than the previous rate. Giving some relaxation to the leather industry, the government has now fixed four per cent tax on the leather goods up to the retail rate of Rs 300 per piece.

Addressing a press conference here, Utter Pradesh Chief Minister Mayawati said commodities such as atta (flour), besan, maida, jaggery, DAP fertilizer and bio-fertilizer. Now all raw materials of the weavers community have been exempted from VAT while several products used for religious purpose and cotton and silk yarn were on the list of expemtion.

She said Rampuri knives, locks of Aligarh and some articles used by the barbers have also been exempted from VAT.

The CM said plastic household articles, picture tubes, molassis, greeting cards, calenders and school bags would be taxed at the rate of four per cent.

In order to compete with the neighbouring states, UP government has decided to reduce the VAT on picture tube, agro based mentha, and oxygen used in the hospitals to four per cent. Diesel, neptha oil and furnance oil used in the industry along with natural gas will be now charged at the rate of four per cent and CNG at 12.5 per cent.

The CM said the changes were made after receiving inputs from the common people and in order to rationalise the tax structure with other states to benefit the consumer, farmers, traders, exporters and the industry.

Earlier on January 1, when VAT was implemented in the state, Ms Mayawati had said her government accorded implementation of the VAT so that the common man could get quality items of his daily need at minimum prices.

''With the introduction of the VAT and making the tax structure of UP at par with other states, illegal transportation of goods will be curbed and all, including the common public, farmers, industries and traders will be benefitted,'' she said and called upon the manufacturers and traders to pass on the benefit of the tax reduction to the consumers.

''Keeping in view the needs of the common man, tax rate on 91 items has been reduced in the VAT. While tax rate of 75 articles remained unchanged, only 20 articles are such on which rates have been increased but the option of reconsidering this rate is still open. With the new system, now 15 rates of trade tax have been reduced to four,'' the Chief Minister said.

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