Bill passed in Assembly to hike VAT on certain items
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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 crore.

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

PTI


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


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