The Jharkhand government has withdrawn its recently imposed 4% value added tax (VAT) on foodgrains and on onions and potatoes being sold in the state.
The governor?s advisory council announced withdrawal of VAT on these commodities for a year, 2009-10, late last Friday.
On June 17, the governor had assured members of two Congress delegations that he would take a decision on the matter ?in the public interest?, thereby hinting that his office was in favour of withdrawal of the imposition which would have netted only Rs 20 crore annually as governmental revenue.
While welcoming withdrawal of VAT from the commodities, Singhbhum Chamber of Commerce & Industry (SCCI) general secretary Suresh Sonthalia said the decision to withdraw VAT would ?definitely give relief to the common man?.
Sonthalia, however, cautioned wholesalers and retailers of potatoes and onions in the state not to resort to hoarding in the name of VAT, as the prices of these two items were already seeing new highs everyday.
The SCCI general secretary said the chamber would be forming a four-member ?monitoring committee? which would go around most markets in and around the city to check prices, particularly that of potatoes and onions.
?The four-member panel would submit its report to the chamber?s executive committee after going around the city shops for seven days,? said Sonthalia.