Maharashtra Government today announced reduction of VAT on beedis by 7.5 per cent. "A 12.5 per cent tax on beedi was proposed in the budget tabled last month. Accordingly,a notification had been issued with effect from April 1. However,we have received representations from various quarters to reduce the tax," Finance Minister Ajit Pawar informed the State Legislative Assembly. As a result,a decision has been taken to reduce the tax and it would now be 5 per cent,he said. Similarly,tax on non-manufactured tobacco,which was pegged at 20 per cent in the budget,will be reduced to 12.5 per cent,Pawar said.
