Amended Delhi Value Added Tax Bill cleared

The Delhi Assembly on Tuesday passed the Delhi Value Added Tax (Second Amendment) Bill which will allow the state government to regulate the VAT on petroleum products, liquor and aerated drinks. Objecting strongly to the bill, BJP’s MLA Vijendra Gupta tore off its copy and staged a walkout along with party MLAs Om Prakash Sharma and Jagdish Pradhan. Amending the existing VAT doesn’t mean that the state government will increase the tax. This move will only make tax system flexible, Deputy Chief Minister Manish Sisodia, who is also the Finance Minister, said. The government said the bill will make enabling provisions for levy of VAT in respect of goods enlisted in the Fourth Schedule such as liquor, tobacco, aerated drinks and others — at flexible rates instead of a flat slab of 20 per cent. “At least we have put an upper limit (30 per cent), but there are some other states where it is unlimited,” Sisodia said.