In order to encourage the agricultural sector, Delhi
government today decided to waive Value Added Tax on
fertilisers. The decision was taken at a cabinet meeting
presided by Chief Minister Sheila Dikshit. Currently,
VAT on some fertilisers are 12.5 per cent while some
others are taxed at the rate of 5 per cent. "We have
taken the decision to provide relief to farmers who have
been requesting us to withdraw the VAT on fertilisers,"
Dikshit said. She said there has been a significant
difference in the prices of fertilisers in Delhi and
Haryana on account of difference in tax rates. The VAT
on fertiliser was imposed by Delhi government in April
2010. Fertilizers, pesticides, insecticides and micro
nutrients will not attract any VAT after the issue of a
notification to this effect. The government had
collected Rs 22.04 lakh as VAT on fertiliser in the year
2010-11. Dikshit said the government has also decided
not to levy tax on art exhibitions but VAT will be
charged for sell of exhibits.
