The state Cabinet, under Chief Minister Bhupinder Singh Hooda, today approved the proposal of excise and taxation department to impose a lower rate of value added tax (VAT), currently at a rate of five per cent, on goods purchased by central police canteens.
The Cabinet also gave ex-post facto approval to levy of VAT on liqour. On “declared goods” VAT was increased from four to five per cent. A decision to this effect has been necessitated. The central government has designated certain goods, considered to be goods of special importance, in inter-state trade and commerce as “declared goods” and levy of sales tax is regulated on these goods at a uniform rate.
The Cabinet also approved a proposal to revise rate of tax from four to five per cent relating to tax deduction at source, under the Haryana Value Added Tax Act, 2003 by government procuring agencies.
