Industry seeks lower Vat in Budget

Avon Cycles and Hero Group have sought 4% VAT on battery operated electric bikes from Punjab government in the upcoming budget. Lower VAT levy is being sought on footwear, Steel, CFSL Lamps, Desi Ghee and hand tool products by the entrepreneurs from the budget.

"The battery run bicycles has been kept under the 12.5 per cent VAT slab that needs to be brought to 4 per cent to promote the environment friendly product. The e-bikes that need no registration or license formalities doesn't consume carbon fuels," Omkar Singh Pawha, MD, Avon Cycles said during pre-discussion with Finance Minster Manpreet Singh Badal organized by PHDCII. "The e bikes hold huge scope for growth in domestic and international market. The products need to be brought under bicycle category and not in 'other bicycle' category that invites higher levy.

The dairy industry in state is seeking relief from the 4% purchase tax on fresh milk apart from other soaps in the budget. "The tax incidence is adversely affecting the dairy business and also the export prospects from Punjab as the tax doesn't exist in any other state," Jaspal Singh Sidhu, Resident Co-ordination Manager, Nestle India highlighted during the meeting.