Himachal to follow neighbours on VAT

Himachal Pradesh will implement the value-added tax (VAT) when its neighbouring states do so, the state industries minister, Rangila Ram Rao, has said.

"VAT will have to be implemented because it is mandatory. Besides, the state cannot live in isolation. Suggestions from industrialists and traders are being taken," he said.

Talking about the state liquor policy, the minister said, "Only those departmental stores having over a Rs 50-lakh annual turnover will be eligible for beer and whisky licences."

"The state excise department accounts for 86 per cent of the revenues of the Himachal government. This year, the total revenue to be generated is targeted at Rs 900 crore."

Regarding the controversial entry tax on vehicles entering Himachal Pradesh at around 12 entry points, he said people living within a 5-km radius of the check points on the border would be exempt from the tax.

Currently, light vehicles entering the state boundaries every 24 hours are charged Rs 30 per vehicle, heavy vehicles Rs 50, and two-wheelers Rs 10.