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Bill passed in Assembly to hike VAT on certain items

Last Updated: Wednesday, December 16, 2009 - 23:47

New Delhi: Delhi Assembly today passed a
Bill in the assembly seeking to hike the Value Added Tax on
certain items, including food, which will fetch the government
an additional revenue of Rs 500 crore annually.

The amendment was introduced to raise Value Added Tax
on over 120 items from current four per cent to five cent on
certain items to partially compensate the loss incurred due to
phasing out of Central Sales Tax.

The Delhi Value Added Tax (Amendment) Bill, 2009, was
passed by the assembly in absence of BJP legislators as they
were expelled from the House for creating ruckus during Chief
Minister Sheila Dikshit`s reply to a no confidence motion.

Introducing the Bill on Monday, Finance Minister A K
Walia had said it was introduced "to incorporate certain
provisions aimed at addressing on an urgent basis some "fresh
anomalies and discrepancies" which have come to notice in the
course of the implementation of the Act."

The increase in VAT rates on the items will help the
Government generate additional resources to the tune of Rs 500

The Assembly also passed the Delhi Entertainment and
Betting Tax (Amendment) Bill, which seeks to increase tax on
Direct-to-Home (DTH) services.


First Published: Wednesday, December 16, 2009 - 23:47

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