BHUBANESWAR: The State Government on Saturday put on hold levy of value-added tax (VAT) on sugar and textiles following strong opposition from the trading community. “The State Government has decided to keep in abeyance the imposition of VAT on sugar and textiles,” Finance Minister Prafulla Chandra Ghadei announced in the Assembly.
While many States have not taken any decision on levying VAT on the two commodities, a few States, which had decided to impose the tax with effect from April 1, have started reviewing their decisions, Ghadei said.
While lakhs of textile traders across the State downed shutters on Friday protesting against the imposition of VAT, the Odisha Byabasayee Mahasangha had threatened to stop importing food and other essential items to the State till the Government rolled back the hike in VAT to 4 per cent on various products. It had been increased to 5 per cent.
source: IBN LIVE