New Delhi: Delhi Assembly on Tuesday passed the Value Added Tax (VAT) amendment Bill on Tuesday which will raise the taxes on petroleum products, alcohol and aerated drinks.
This move of Aam Aadmi Party led Delhi Government has aimed at increasing the the city state’s revenue collection, was opposed by the BJP.
Opposition leader Vijender Gupta tore a copy of the bill and staged a walk out with the other two BJP MLAs who make up the Opposition in the state assembly.
Meanwhile Deputy Chief Minister Manish Sisodia had tried to justify the move of CM Arvind Kejriwal’s government as making VAT more flexible.
Sisodia said, “At least, we have put an upper limit. There are states where VAT is fixed at the discretion of the government. Through this flexibility we aim to end black-marketing.
In Haryana and Gujarat VAT is unlimited, in UP and Punjab the government can raise it to 50%. But we have fixed the upper limit to 30%, so that the next government does not raise it to 50% or above,”
CM Arvind Kejriwal said that the amendment will not lead to inflation. The amendment will allow the government levy VAT at different rates, instead of a flat rate of 20% at which it is currently levied. The tax-rate will be higher than 12.5% but not be more than 30%. Apart from drinks and petroleum products, the same rule will apply on watches costing above Rs 5,000.
Convenor of AAP traders wing, Brijesh Goyal said, “The government has only cleared a proposal to increasing VAT. It has not been increased on anything that will affect the common man. Instead, the government has come up with proposals to ease the entire process of VAT.”
But the move of Arvind Kejriwal government will now face a harsh criticism as Delhi Youth Congress will stage a protest against VAT Bill on Wednesday.
Bureau Report
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