New Delhi, March 28 (IANS) In a major relief for Delhiites, the city government on Monday proposed to reduce VAT on a slew of products, including sweets, namkeens and readymade garments, from 12.5 to five percent.
Announcing the proposal in the Delhi government's budget for financial year 2016-17, Deputy Chief Minister and Finance Minister Manish Sisodia said that sweets and namkeens are daily consumable items and needed to be made cheaper.
He also announced reduction in the VAT on marble from 12.5 to five percent.
He announced that VAT on watches costing above Rs.5,000 has been proposed to be reduced from a high of 20 percent to 12.5 percent.
"We tried to bring balance in the rates of goods in Delhi on par with other states to avoid outflow of tax. It was made possible through voluntary compliance, and not through imposition," he said.
Sisodia said that VAT on battery operated e-rickshaws, hybrid vehicles has been proposed to be reduced from 12.5 percent to 5 percent.
