Delhi govt slashes VAT rates on cutlery, wax and wood

Delhi government has reduced Value Added Tax (VAT) on all cutlery items made of metal from the existing 12.5 per cent to five per cent, an official statement said.

“In keeping with the Delhi government’s agenda of implementing pro-people tax reforms, the finance department has notified more than seven percent reduction in VAT charged on the items of three categories,” said spokesperson of Delhi government. 

The items are all utensils of cutlery items made of metal (including pressure cookers/pans) except those made of precious metals, wax of all kinds not covered by any other entry of any schedule of the Delhi Value Added Tax Act, 2004 and wood & timber. 

According to government, the VAT on these items was slashed from existing 12.5 per cent to 5 per cent on the above mentioned items in keeping with the amendments approved recently by the Delhi assembly to the Delhi Value Added Tax Act 2004. “Delhi government is of the view that the existing ambiguity in the tax structure for no valid reason needs to be rectified. Rationalisation of VAT and other taxes is the need of the hour and Delhi government will continue with its pro-people reforms and is committed to <g data-gr-id="26">remove</g> the lack of uniformity in taxes like VAT which is resulting in consumers paying more taxes for no valid reasons,” added the spokesperson.

It was pertinent to mention that the government was facing severe criticism for increasing VAT on petrol and diesel up to 20 per cent which has increased the cost of petrol in the city. “The cost of the petrol and diesel <g data-gr-id="31">is however</g> lower in Delhi in <g data-gr-id="29">comparision</g> to neighbouring Uttar Pradesh, Haryana and Punjab. The decision was taken in consultation with the neighbouring state government to ensure uniformity in tax in northern states. It will reduce hoarding and black marketing,” said spokesperson of Delhi government justifying the hike. However, <g data-gr-id="30">government</g> implemented its decision to hike VAT without any protest but it is finding tough to implement the decision to impose environment tax on goods vehicles as MCDs have refused to collect the on their behalf.