RMG to cost less in Delhi as govt slashes VAT

30 Mar '16

2 min read

Readymade garments, shoes and watches are among several items that will now cost less in Delhi after the state government slashed value-added tax (VAT) rates from 12.5 per cent to 5 per cent in its Budget.

The Arvind Kejriwal-led AAP government said it has had a 17 per cent growth in tax revenue, 31 per cent in excise and 21 per cent in stamp duty in 2015-16. The Rs 46,600-crore Budget for FY17, presented by Deputy Chief Minister and Finance Minister Manish Sisodia, pegs the Plan outlay at Rs 20,600 crore.

Education, health and transport sectors got a lion's share of the total allocation in line with the party's manifesto . "The government is committed to reducing tax arbitrage and will attempt to keep a uniform rate with neighbouring states," said Sisodia. VAT has been rationalised on all tobacco products, including cigarettes, at a uniform rate of 20 per cent. VAT constitutes 65 per cent of the total tax revenue.

The AAP government has decided to continue with its 50 per cent power subsidy for all consumers using up to 400 units, which covers around 90 per cent of total domestic consumers. A provision of Rs 1,600 crore has been set aside for this. (SH)

Fibre2Fashion News Desk – India

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