Source: News Bharati English08 Jul 2016 09:24:28
Guwahati, July 8: The Assam government on Tuesday made announcements to curb the burden of rising prices and financial instability of the state. For this, the state government has increased VAT and entertainment tax in the state, with many commodities likely to become costlier in the coming days.Through a notification released by the Finance department on Tuesday, VAT has been raised by 1 percent from 5 percent to 6 percent. This will impact as many as 129 items under 2nd schedule of Assam Value Added Tax Act, 2003 (Assam Act VIII of 2005). Commodities which will become costlier range from sugar and cooked food to CFL bulbs, some medicines and plywood to automobile spare parts.
The Assam government has also raised the entertainment tax under the Assam Amusements and Betting Tax Act, 1939. Cable TV viewer households will have to fork out Rs 20 extra per month; for households with DTH (direct-to-home) TV set-ups, the additional monthly payout will be Rs 30. Hotels will have to pay additional Rs 50 for each TV set, cable or DTH. The government has also decided to withdraw the partial exemption of the amount granted to oil companies from 21 July, 2011.
The result will be that LPG cylinders are going to be costlier by Rs 14. Diesel and petrol too will now cost more in Assam with the VAT on diesel modified to “20 paisa in the rupee or Rs 8.75 per liter, whichever is higher”. Likewise, VAT on petrol and other motor spirits have been modified to “29 paisa in the rupee or Rs 14 per liter, whichever is higher”.
Earlier, the VAT stood at 16.5 paisa in the rupee for diesel and 25.75 paisa in the rupee for petrol. Pre-owned cars will also cost more with prices of cars having capacity upto 1,000 cc set to increase by Rs 3,000 more. Earlier, customers in the state paid Rs 3,000 VAT for pre-owned cars; now they will have to pay Rs 6,000.