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The
notification for the enforcement of increased taxes is yet
to be issued by the government.
New
tax rates, in accordance with the cabinet decision, are to
come into force from October 1. The government had said
that the hike in VAT would fetch additional revenue of Rs
100 crore per month.
The
UP cabinet on September 19 decided to increase the rate of
VAT on tea, mobile phones, TVs, laptops, air-conditioners,
refrigerators, electrical and electronic goods, steel,
iron and steel and their products, arms and ammunition and
several other products.
Official
sources here indicated because of the vehement opposition
by the traders and the UP bandh call on October 4, the
government is considering some relief, particularly to
those involved in the computer and cell phone business.
Sources
said the issue of notification to implement the increased
rates might fuel the traders’ resentment against the
government.
A
section in the government is also advocating the view that
the rollback will send a bad signal and will make the task
of the government of mopping up additional revenue more
difficult.
Source
: Business Standard - Mumbai, Maharashtra, India, dated
29/09/2008
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