At the beginning of new academic session, school children and their parents get a gift of reduced VAT on school bags.
The revised VAT rates which will reduce the cost of a host of items including marble, sweets, ‘namkeens’, school bags, footwear and ready-made garments have come into effect following a notification issued on May 10.
New VAT rates a big step forward to make VAT rates in Delhi the lowest in the country
According to the statement released by the Government of Delhi, Govt. is committed to reduce air pollution in the city, promote health of people of Delhi and support eco-friendly modes of transport. To achieve this objective, the Government has reduced VAT on hybrid cars, battery operated vehicle and e-rickshaws from 12.5% to 5%. This step apart from promoting eco-friendly vehicles to reduce pollution in the city will also bring relief to large number of entrepreneurs earning their livelihood by plying e-rickshaws.
“With reduction in VAT on hybrid vehicles, it is expected that large number of consumers will shift from petrol/diesel vehicles to hybrid vehicles thereby bringing down vehicular emission. There will be tax rebate of lakhs of rupees to the buyers of hybrid vehicles With reduction in VAT on battery operated vehicles, it is expected that more players will come in the market thereby increasing availability and usage of these vehicle”, said the statement.
“The Government of NCT of Delhi is also committed to making VAT rates in Delhi the lowest in the country. To achieve this objective, a number of steps have been taken to rationalize the VAT rates. In the last financial year VAT on Timber was reduced from 12.5% to 5%. In the current financial year, with coming into effect of new rates, the VAT on the number of commodities including marble, sweets, namkeens, school bags, footwear and readymade garments has been reduced significantly. General tax rate in Delhi is already low compared to other states”.
“The common man has got a big tax relief with reduction of VAT on footwear from 12.5% to 5%. Footwear costing below Rs.500 are totally exempted from VAT. Similarly, there is another relief to the consumers with substantial reduction in VAT from 12.5% to 5% on all kinds of readymade garments. The consumers should expect decline in prices of these commodities immediately”.
“The new academic session has started and the Govt. of NCT of Delhi has given a gift to the school children and their parents by reducing the VAT on school bags from 12.5 to 5%. This is also another step in rationalizing the tax rates. The common man has also get another tax relief through reduction of VAT on sweets and namkeens from 12.5% to 5%. People can also expect reduction in cost of construction of their houses as marble will now be much cheaper as the VAT has been reduced on marble also from 12.5% to 5%. The buyers of watches can also look forward to financial savings as the VAT on watches has been reduced from 20% to 12.5%”, also said in the statement.
The Full text of the statement can be read here.
