Gujarat Government announced changes in tax rates of various commodities, providing exemptions to different commodities which include textiles, tobacco, sugar, diamond and indigenous seeds from Value Added Tax (Vat).
Saurabh Dalal, State Finance Minister said, that giving due consideration to representations by industries and traders, Government took decisions to solve difficulties faced by traders.
Gujarat will implement Vat from April 1, 2006, following an Amendment Bill passed in Assembly.
A notification regarding decision related to Vat is on the cards, informed Dalal.
Decisions announced on Wednesday stated textile, tobacco, sugar, diamond, indigenous seeds have been exempted from Vat.
Mr. Dalal said, this decision has been taken in the interest of traders.
Traders with turnover of less than Rs 50 crore will have to pay lumpsum tax at the rate of 0.5 percent, bringing some relief to traders, said Dalal.
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