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Uttrakhand imposes surcharge on food items, consumer goods

Last Updated: Sunday, February 28, 2010 - 17:43

Dehra Dun: The Uttarakhand government on Sunday
announced a surcharge of 0.5-1 per cent on select consumer
goods and day-to-day food items like dal, sugar and rice,
which would come into effect from tomorrow.

In a notification, the state government said that a
surcharge of 0.5 per cent would be imposed on items where the
Value Added Tax (VAT) is 4 per cent and 1 per cent on items
with 12.5 per cent VAT.

The new surcharge food would be levied on essential items
like dal, sugar, rice and various FMCG items, making them

When contacted, state media advisory committee Chairman
Devendra Bhasin said the surcharge was imposed since the state
government was facing a heavy burden of the Sixth Pay panel.

The finance department is hoping to generate Rs 100-150
crore through the new surcharge.

The people in the state will have to bear additional
burden of the surcharge on food items, already under strain
after the fuel price hike announced in the Union Budget two
days back.

Seen as a move to earn extra revenue in the face of acute
financial crunch on account of Rs 4,000 crore outgo that the
state would have to face due to the recommendations of the
Sixth Pay Commission. The state is trying to generate more
revenue for the ballooning Non-plan expenditure.

The move has come under severe criticism from various
quarters. The budget session of the Vidhan Sabha is slated to
begin from March 8.


First Published: Sunday, February 28, 2010 - 17:43

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