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Gujarat levies additional tax on VAT to fetch Rs.880 crore

The only tax proposal Finance Minister made today was to introduce additional tax on VAT. However it exempted tax on certain items like petrol and diesel. This is to fetch Rs.880 crore to the state in one year.



 

while moving the idea of tax he said that the state has decided to give priority to the development of Human Resources and infrastructure for the balanced economic and social growth.

As per the proposal there will be addition of one paisa in the tax rate of goods which are being taxed at the rate of 4 paisa in the rupee presently. In other taxable goods there will be addition of 2.5 paisa. However this will not apply to petrol, diesel, declared goods and exempted goods.

The government has also allowed civic bodies to levy, collect and retain professional tax. At present these bodies were collecting professional tax on behalf of the state government which was given to civic bodies as collection charge. This amounts to Rs.120 crore.

Source : Gujarat Global.com - Ahmedabad, Gujarat, India,  dated 25/02/2008

 

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