Jharkhand government has brought down value added tax (VAT) on kerosene which is being supplied through public distribution system (PDS) in the state from five per cent to two per cent. The decision on reduction of VAT was taken on Monday in the sate cabinet..
The VAT on kerosene from the PDS, will be benefited about 25 lakh people in the state who are drawing kerosene through PDS.
However, the state government kept mum on reduction of VAT on diesel and increasing LPG cylinders from three to six at subsidized rate that are being implemented in the Congress ruled states.In a related development, Jharkhand Vikas Morcha Prajatantrik (JVM-P) led by former chief minister Babulal Marandi which has been agitating against increasing diesel prices and cap on subsidized LPG and FDI in multi-brand retail, decided to withdraw support to the UPA government for its “anti-people” policies.
General secretary of the JVM-P, Pradeep Yadav said the party has two members in Parliament The state Cabinet also decided to increase the rate of VAT on tobacco products from the current rate of 14 per cent to 20 per cent.
It may be mentioned that the state cabinet in July this year approved a blanket ban on the manufacture, storage and distribution of all types of gutkha and paan masala which have tobacco and nicotine content due to increased number of oral cancer patients.Cabinet co-ordination department’s principal secretary N N Pandy after the Cabinet meeting in July this year had said since 2006, there had been a nearly 30 per cent increase in the number of oral cancer patients, a majority of them were addicted to tobacco and related products.
