UP imposes additional tax on selective commodities

Font Size

Print

Feedback

Email

Discuss

Lucknow: In a bid to improve the state's fiscal health, the Uttar Pradesh government has decided to impose an additional tax (AT) up to one per cent on a number of commodities from June 1.

"This AT, which will come into effect from June 1, will be imposed on commodities which are already taxable under Value Added Tax (VAT) system," a notification, issued by the government in this regard on Friday, said.

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.