UP imposes additional tax on selective commodities

As per the notification,0.5 per cent AT will be imposed in all the commodities covered in the second schedule of the VAT. Similarly,one per cent AT will be imposed on non-categories commodities covered in schedule five,on which 12.5 per cent VAT is being charged by the state government. At present,four per cent VAT is being charged on schedule four commodities.

A senior tax department official said,the Government has already amended VAT to facilitate imposition of the new tax. “A proposal to implement AT was approved by the state cabinet by circulation on May 26,” he added.

However,the new tax will not be imposed on commodities covered in schedule one,three and four.

“Provision of imposing five per cent AT for next five years had been made in the fresh amendment,but as of now only up to one per cent would be charged,” the official said.

Meanwhile,with the implementation of the new tax the state government has also decided to withdraw entry tax on eight commodities.

“Last year,the Government imposed five per cent entry tax on fridge,AC and AC plants,Aluminium and steel products,all types of cables,marble stone and tiles,laptop and computer system,television,LCD,machines and spares and imported wood,” the official said. He said from June 1 these items would be again exempted from the entry tax.