Govt plans to cut VAT on CFL bulbs

To encourage use of Compact Fluorescent Light (CFL) bulbs in the Capital, the Delhi Government plans to reduce the Value Added Tax (VAT) levied on them from present 12. 5 per cent to 4 per cent. The proposal to cut the duty will be forwarded to the Empowered Committee of State Finance Ministers.

The neighboring states like Haryana, Punjab and Chhattisgarh have already reduced VAT to 4 per cent on the CFLs. Finance Minister AK Walia said that the Delhi Government will take up the issue with the committee soon so that uniformity can be brought on the issue. Cutting down on VAT will mean that these bulbs will be available at a cheaper price. The CFL blubs save electricity as compared to the normal incandescent blubs.

Source : Delhi Newsline - Delhi, India, dated 27/07/2007