New Delhi: A day after hike in VAT rates on petrol and diesel in Delhi, the Aam Aadmi Party government issued a notification on Thursday pertaining to an increase in entertainment tax.
The proposal to increase entertainment tax from 20 percent to 40 percent was tabled by Deputy Chief Minister Manish Sisodia in Assembly last month and the government has now notified its decision.
This means that watching movies and television will be dearer in the national capital from Monday.
"Watching movies in cinema halls in Delhi will be costlier from July 20 as government has issued the notification in this regard," said a senior government official, as per PTI.
Apart from this, watching television through cable and DTH services will also cost more as the decision to increase an entertainment tax on these services from Rs 20 to Rs 40 was also notified by the AAP government.
The official also said that government may also notify its decision to increase luxury tax from 10 per cent to 15 per cent in next week.
According to the official, the file pertaining to luxury tax has been sent to its law department for its clearance before notifying this decision.
Petrol, diesel prices in Delhi go up as AAP govt hikes VAT
Yesterday petrol prices were increased in the national capital by Rs 2.78 per litre and diesel by Rs 1.83 as the AAP government raised Value Added Tax (VAT) on them.
The VAT on petrol was increased to 25 percent from 20 percent while it will be 16.6 percent for diesel against current rate of 12.5 per cent.
After the increase, a litre of petrol is now costing Rs 69.43 per litre while that of diesel is Rs 52.07.
It was the first hike in VAT by the AAP government since capturing power in Delhi.
Justifying the increase, the government had said it effected the hike to bring uniformity in the tax rates with neighbouring states.
A meeting of finance ministers of Delhi, Punjab, Haryana and Himachal Pradesh on May 21 had decided to move towards uniformity in tax rates and develop a common market to boost trade in the region.
A senior government official had said that after this increase in the rate of VAT, the retail price of diesel in Punjab, Haryana and Delhi will be almost the same, as per PTI.
The Delhi Assembly had on June 30 cleared a VAT Amendment Bill which allowed it to increase VAT up to 30 per cent on 11 goods including petroleum products, tobacco and aerated drinks.
BJP, Congress stage separate protests against VAT hike on fuel
Meanwhile, BJP and Congress today accused the AAP government of "cheating and betrayal" as they staged separate protests in the city.
Activists of Youth Congress tried to march towards Kejriwal's residence where they were stopped by a heavy police presence, while water cannons were used to disperse BJP workers near the state Secretariat.
Delhi BJP chief Satish Upadhyay said the AAP government's justification to hike the rates did not have any basis as Kejriwal was spending hundreds of crore for "self-glorification," as per PTI.
"Strange comparison is being drawn with other states. Apparently they are rationalising. But this is return gift to Delhiites by increasing VAT due to which price rise is inevitable. This is nothing short of cheating and betrayal with the people of Delhi," he said.
(With Agency inputs)