UP Govt. exempts cotton, silk yarn, fertilisers from VAT

Uttar Pradesh Government Friday exempted a number of items such as cotton, silk yarn and flour from value-added tax following demands from certain quarters in this regard.

Announcing the decision taken by the Cabinet, Chief Minister, Mayawati, told reporters that cotton, silk yarn, DAP and bio-fertilisers, gur, flour, maida, besan, rudraksh and items used for religious programmes had been made tax-free.

Mayawati said exempting cotton and silk yarn from VAT would help weavers. Items used from bamboo, newspapers and newsprint have also been exempted, she said.

The Cabinet also decided to impose four per cent tax on footwear items up to Rs 300 made in Agra, besides imposing four per cent tax on tyre, tube and tractor-trolley.

AICC general secretary, Rahul Gandhi, had written a letter to Mayawati, demanding rationalisation of taxes on footwear.

The State Government had implemented VAT from January 1 after which a number of organisations were demanding some changes in tax rates.

Source : Hindu - Chennai, India, dated 04/01/2008