Jharkhand government has withdrawn Value Added Tax (VAT) from foodgrains and some other items. Bedsheets, towels, handkerchiefs and blankets have been exempted.
Earlier, the state government had imposed four per cent VAT on bedsheets, towels, handkerchiefs and blankets and two per cent on foodgrains. However, VAT on motor parts has not been reduced and it has gone up from 12 per cent to 14 per cent.
In the ongoing budget session of the state assembly, legislators cutting across party lines, strongly opposed imposition of VAT on foodgrains and other minor items and demanded a rollback. They argued that the state government would hardly earn between Rs 4 crore and Rs 5 crore from the move.
