Haryana Cabinet, which met under the chairmanship of chief minister Bhupinder Singh Hooda here on Monday, decided to either exempt or reduce the rate of value added tax (VAT) on certain commodities on recommendations of the State Level Consultative Committee (SLCC). This decision would benefit the trade, industry and consumers to the tune of about Rs 75 to 80 lakh per year.
It was decided to exempt coarse maize bran chhilka from tax. Also, now wooden crates, lith film and 19 chemicals and hardware inputs would be taxed at a reduced rate of 4%. These chemicals are used as industrial inputs.
The chemicals and hardware inputs included lead oxides, red lead and orange lead, hypochorites, commercial calcium hypochlorite, sulphates, alums, peroxosulphates, silicates, commercial alkali metal silicates, butan-I ol(n-butyl alcohol), ammonium dihydrgen orthophosphate and mixtures thereof with diammonium orthophosphate, cleaning and degreasing preparations, polishes and composition for metal, glues derived from bones, additives, salts, stippers, passivations, intermediates and other chemicals used in various types of electroplatings such as nickel, zinc, copper, satin Nickel, chrome brass, silver, gold, aluminium, lead, tin, tin cobalt, water treatment chemicals and ion exchangers. The other such items included power capacitors, perforated sheets of width 24 inch and above, elevator buckets, buckets bolts, other inorganic acids and other inorganic oxygen compounds of non-metals, artificial corundum, whether or not chemically defined, aluminium oxide, aluminium hydroxide, phenol hydroxybenzene and its salts and rubber crumbs.
The entry number 74 for ethylene, propylene would be replaced with acyclic hydrocarbons. The Cabinet also decided to write off arrears amounting to over Rs.39 lakh as these had become irrecoverable even after resorting to all procedures and efforts. A decision to this effect was taken by the Cabinet following the recommendation made by a Committee headed by excise and taxation minister.
The committee had considered cases of arrears involving upto Rs 5 lakh per case. In all, there are 25 such cases for which arrears have been waived off.