Post News Network
Bhubaneswar, June 28: Bowing to a long standing demand of Orissa Byabasayi Mahasangha (OBM), the state government Tuesday decided to reduce value added tax (VAT) from five per cent on all varieties of pulses to one per cent on an experimental basis for three months beginning July 1 this year.
A decision to this effect was taken at a state cabinet meeting chaired by Chief Minister Naveen Patnaik at the Secretariat here Tuesday evening. Briefing the media, Chief Secretary Aditya Prasad Padhi said the government has proposed to reduce VAT from five per cent to one per cent on an experimental basis for three months in order to restore stability in prices of these commodities in the market.
“Due to variation in climatic condition, production of pulses has declined in the country. The essential commodity is being imported to control its price and if taxes are added to the basic price, the retail price of these goods becomes higher,” Padhi said, adding, since traders are demanding a cut in VAT to tame prices, we will implement it to see if the benefit reaches the consumers.
“We have also been told that the state government will not lose revenues due to the VAT cut,” Padhi said, adding, if the assumptions fails we may withdraw the move.
Meanwhile, OBM general secretary Sudhakar Panda welcomed the decision. “The move will not only benefit consumers and traders but will also help the state government. State earns around `3 crore every month but the new move will push the revenue mop-up to `5 crore per month.
As many as 14 proposals were taken up at the cabinet meet including a nod for expenditure of `2,628 crore for setting up of model (English medium) schools on CBSE pattern under “Orissa Adarsha Vidyalaya Yojana”.
