Tea, edible oils cheaper in UP

As many as 91 goods, including tea, edible oils and milk products, have become cheaper in Uttar Pradesh following implementation of Value Added Tax (VAT) regime which comes into effect from today.

"The prices of 91 items, including tractor, tea, cycle, milk products, paneer, cheese, edible oils, readymade garments, chemical fertilisers and match boxes have been reduced", the UP government said in an advertisement.

These changes follow introduction of VAT by the state government from January 1, amidst protest by the traders.

The state government further said that there would be no increase in prices of 76 commodities including computer, chemicals, cotton yarn, PVC pipe, food grains and oil seeds.

The advertisement also claimed that UP is the only state where the VAT law does not have a specific provision of prosecution of traders.

Besides, it added, the government has adopted efficient VAT procedure to enable transfer of refund to trader's account directly within 30 days.

Referring to the benefits of the new tax regime, it said several items of common consumption would become cheaper in the state following implementation of the VAT. UP is one of the last few states to implement the VAT, which replaces the existing sales tax. Most of the states have implemented the new tax regime from April 1, 2005.

The UP government said it has given tax concessions or exempted goods used by women like cosmetics, bangles, vermilion, handloom products, banarsi sarees and sewing machine.

Items used by students like stationary, computer, CD and DVD would also become cheaper, as tax rates have been slashed on these items, the advertisement said.

The consumer would also benefit with industrial cable, invertor, transformer, transmission wire, electronic goods and packing material becoming cheaper under the VAT regime.

Farmers of the state would also be directly benefited by the new taxation system as there would be no tax on juar, maze, barley and all kinds of seeds, it added.

Referring to industry, it said, the new regime would benefit exporters who would not be required to pay any taxes, in addition to having easy access to the process for refund and registration.

The UP government, it added, has also set up a settlement commission to resolve bigger tax disputes. Under the VAT regime, the advertisement clarified, the tax paid on capital goods would be refunded, while on raw material, lubricant, store the tax would be either refunded or adjusted.

To facilitate introduction of VAT, the state government has set up registration cells and help desks across the state.