Haryana reduces VAT on CFL, Rail parts

Haryana Government Wednesday decided to reduce rate of tax under VAT on Compact Fluorescent Lamps (CFL) and tubes from 12.5 per cent to four per cent by including the same in schedule C of Haryana Value Added Tax Act, 2003.

A decision to this effect was approved in a meeting of Haryana Cabinet, which met here today, under the chairmanship of Chief Minister,  Bhupinder Singh Hooda. The decision to reduce tax on CFL would encourage the sale of the same and save thousands of watts of energy being consumed through conventional tubes and bulbs.

The Cabinet also approved the proposal of the Excise and Taxation Department to amend the Section 27 of the Punjab Excise Act, 1914 ( as applicable to the State of Haryana) enabling the lease out of manufacturing of Indian Made Foreign Liquor (IMFL).

The cabinet also approved the proposal of the Excise and Taxation Department to reduce VAT on spares and parts of railway coaches, engines and wagons from 12.5 per cent to four per cent with effect from April 1, 2007 by amending entry 72 of the schedule C of the Haryana VAT Act, 2003. Also, it would be aligned with the rate recommended by the Empowered Committee and being followed by most of the States.

Haryana Government today decided to revise water rates, but there would be no change in water rates for drinking purpose and agriculture, which would remain the same.

The Cabinet which accepted the recommendations of the Cabinet Sub-Committee comprised of Finance Minister, Revenue Minister and Transport Minister approved the proposal to enhance the water rates for brick making and sidewall building and water for construction work from Rs. 250 to 500 per 2500 cubic ft. It was also decided to fix water rates at Rs. 250 per 2500 cubic ft. for water supply in bulk and also in case of industries, power plants and other bulk users. The existing rate for water supply in bulk and in case of industries as well as power plants is Rs. 100 per 2500 cubic ft. In case of other bulk supplies it is Rs. 40 per 2500 cubic ft.