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“Keeping
in view the needs of the common man, tax rates on 91
items, including kerosene, milk and medicines, have been
reduced under the VAT system,” said Uttar Pradesh Chief
Minister Mayawati.
Uttar
Pradesh Governor TV Rajeswar had, yesterday, promulgated
an ordinance for implementation of VAT, which was rung in
today amid a shutdown by traders.
Union
Finance Minister P Chidambaram congratulated the state
government for introducing VAT and wished the state
success.
Mayawati
termed it a historic step that would help the common man
get essential and quality items at cheaper rates. She
expressed confidence that with the introduction of VAT and
aligning the state’s tax structure with other states,
illegal transportation of goods would be curbed.
‘Chikan’
clothes, banarasi sarees and handloom items, besides seeds
and agriculture equipment, have been exempted from VAT.
The tax rate has also been reduced on chemical fertilisers,
insecticides, pesticides, water pumps, tractors and
tractor-trolleys, and items used in information
technology.
Mayawati
asked manufacturers and traders to pass on the benefit of
the tax reduction to consumers. “Prices of 91 items,
including tractor, tea, cycle, milk products, paneer
(cottage cheese), cheese, edible oils, readymade garments,
chemical fertilisers and match boxes have been reduced,”
the state government said in an advertisement.
The
state government said there would be no increase in prices
of 76 commodities, including computers, chemicals, cotton
yarn, PVC pipes, grain and oil seeds.
The
advertisement claimed Uttar Pradesh was the only state
where the VAT law did not have a specific provision for
prosecuting traders.
Besides,
it added, the government had adopted efficient VAT
procedures to enable transfer of refund to traders’
account within 30 days.
Referring
to the benefits of the new tax regime, it said several
items of common consumption would become.
Mayawati
termed the traders’ shutdown as unfortunate, saying
states ruled by parties to which they were affiliated to
had already implemented VAT.
She
said commercial tax accounted for about 58 per cent of the
total state revenues and VAT would increase tax
collections. The chief minister said only rates of 20
articles had been increased following introduction of VAT
and even these were open for review.
Source
:
Business
Standard, India, dated 02/01/2008
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