Punjab govt slashes VAT on CFL's and Karyana items to 4 percent

In a significant move to save electricity and encourage consumers to use Compact Florescent Lamps (CFLs), the Punjab Government today decided to slash the rate of VAT on Compact Florescent Lamps (CFLs) under the Punjab VAT Act, 2005 from 12.5% to 4%.

Disclosing this here Wednesday Chief Minister's Media Advisor  Harcharan Bains said that a decision to this effect was taken in a meeting of the State Cabinet chaired by the Punjab Chief Minister Mr. Parkash Singh Badal.  The decision came into wake on the persuasion of PHD Chamber & Commerce & Industry during its recent meeting with the Chief Minister to reduce the rate of VAT on CFLs in view of its growing popularity amongst the consumers being energy saving lamps to conserve power.

The Cabinet also approved to reduce the rate of VAT on Mentha oil from 12.5% to 4% in order to promote this crop in the state.  Likewise, the rate of VAT on the Karyana items like hing, khaskhas, magaz of all kinds, singhara, darau kuttu, gond katira, kamarkas, chasku, anardana, amla, ampapad, amb kutra, isubgol, guggal, hallon, shikakai, sabudana, shora, soya, nishadar, fatkari, mushkapur, methi patta and gari burada had also been reduced from 12.5% to 4%.  The Cabinet also approved to reduce the VAT on Desi Ghee and Sweetened Flavoured Milk from 12.5% to 4% to boost the dairy industry in the state apart from considerable increase in the existing revenue.

 The Cabinet also gave approval for amending Section 3 and 3A of Punjab Entertainment Tax (Cinematograph Shows) Act, 1954 through a promulgation of an Ordinance for exemption in entertainment tax to the Cinema owners in Punjab as extended to multiplexes announced by the state Government.  

The Cabinet also gave go ahead to the grant of exemption from levy of VAT on raw materials and consumable procured by or sold to Sri Harmandir Sahib and Sri Darbar Sahib, Amritsar. 

Source : PunjabNewsline.com - Nagar, Punjab, India, dated 16/07/2008