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Uttar Pradesh - Maya lists items with reduced cost post VAT

Feeling the heat of price hike of essential items, the Mayawati government has released a list of goods whose prices have come down after the introduction of value-added tax (VAT) from January 1 this year.



The state government has directed the district magistrates (DMs) and other officials of the trade tax (formerly known as commercial tax) department to take action against those not issuing proper bills and charging high rates on the items of daily use. The state government has advised the consumers to take the bills on any purchase of above Rs 250 and make sure that TIN number is marked on it. 

In a circular issued by Trade Tax Minister Nakul Dubey, it has been said that after the introduction of VAT, the state government has reduced taxes on most of the items of daily use. 

The minister has accepted that the traders are not extending the benefit of reduced tax to the consumers. Also, some of the traders are charging taxes on the maximum retail price (MRP) which is wrong. 

Issuing the list of items on which the taxes have been reduced after the introduction of VAT, Dubey said medicines, cycles, cosmetics, refined oil, pulses, spices, butter, jam, fruit juice, tea, sweets, perfume, wax, hardware and match boxes should become cheaper. He, however, admitted that prices of these items has gone up. 

The minister said that after VAT, tax has remained same on wheat and rice; and hence there is no question of prices of these items going up. 

He said that consumers must approach the local office of commercial tax, in case, the shopkeepers are charging high rates. The minister has also directed the officials of commercial tax department to expedite the process of issuing TIN numbers to the traders so that there should be no confusion among the consumers. 

It may be mentioned that opposition parties, including Samajwadi Party and Bhartiya Janta Party, had stalled the proceedings of budget session of the Assembly on Monday against the price hike. 

After the ruckus of the opposition parties, the state government issued a circular on Tuesday clarifying the rates of VAT and issued directives for action against traders charging high rates.

Source : The Business Standard, India, dated 14/03/2008

 

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