UP reduces VAT on some essential items, farm products

Last Updated: Monday, March 28, 2011 - 18:03

Lucknow: Apparently with an eye on the forthcoming Assembly elections scheduled next year, the Uttar Pradesh government on Monday announced rebate in value added tax on essential items and certain farm products.

"In a bid to make the taxation system logical a few schemes were approved by the state cabinet which was held today and chaired by Chief Minister Mayawati," cabinet secretary Shashank Shekhar Singh told reporters here.

He said the cabinet decided to reduce value added tax on motorised and non-motorised vehicles used by physically challenged people to 4 percent from existing 12.5 percent.

"Besides VAT has been reduced on several others essential items used by the people from 12.5 percent to 4 percent. VAT on 10 HP pumpsets used by farmers has also been reduced from 12.5 percent to 4 percent," Singh said.

He said that settlement scheme for small traders having an annual turnover up to Rs 50 lakh has been simplified and they would be able to avail the scheme round the year.

"If a trader has his registration done then an insurance cover of Rs 4 lakh will be given," he added.

The cabinet secretary said that five per cent tax charged on second hand vehicles has been rounded up in two slabs of Rs 3,000 and Rs 5,000.

"The government has decided to provide all forms of tax department online to the traders," he said.

Singh said that no penalty would be charged from the traders opting for settlement between May 1 to July 31.

He said that the assessment system for cable television networks and water and entertainment parks would be done away with and one time tax would be charged from them.

"In case of old dues, if it is deposited within a specified time then 50 percent rebate in interest will be given and penalty would be waived," he said.

He said that the schemes would result in a gain of Rs 212 crore to the government.

The cabinet secretary said that in another decision it was decided to upgrade and maintain 21 state highways on public-private partnership model in which toll would be charged. "As per the decision highways of total length 2314 crore will be upgraded with an estimated cost of Rs 12,625 crore in which viability gap of 20 percent will be funded by
the Centre," he said.

Singh said that the cabinet also approved a proposal to grant maternity leave to female employees irrespective of the fact that whether they have consolidated leaves left or not.

"For Rabi seaon the government has fixed wheat price at Rs 1120 per quintal and 443 purchase centres will be set up in the state with a target of purchasing 40 lakh MT wheat," he said.

He said that the wages of prison inmates have been increased and government has decided for one time funding to state university to clear their old dues.

"The government will provide Rs 60 crore for payment of dues, besides annual grant will also be hiked by 83 crore," he said.

PTI



First Published: Monday, March 28, 2011 - 18:03

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