[bactrimtab]

The state government on Monday announced revision of sales tax on several items to mobilise an additional revenues of Rs.3900 crores per annum.

An official release said that as the earlier government had left a huge debt of over `1 lakh crore, it became imperative now to mobilise additional resources to adhere to the fiscal norms and also to implement the new welfare schemes.

“Therefore, the government has decided to take various revenue augmentation measures to increase the revenue resources. Revision of sales tax has been identified as one of the possible sources and accordingly, the government has taken the decision and issued the notification today to make certain changes in the sales tax rates,” the release said.

As per the notification, the value added tax (VAT) on the commodities charged at four per cent has been increased to five per cent.

Agricultural implements will continue to be taxed at four per cent.

The VAT on the commodities charged at 12.5 per cent has been increased to 14.5 per cent in order to generate additional resources. Textile and textile products, which were earlier exempted, will be brought under 5 per cent tax, while tobacco and tobacco products which are construed to be ‘negative’ goods will be taken out of the VAT tax rate of 12.5 percent and included in the Schedule II as non-VAT commodities and taxed at 20 per cent, the notification said.

Tax on LCD panels, LED panels, DVDs/CD, mobile phones, I-pod, I-phone and parts thereof, cellular telephones (mobile phones), Ipod, I-phone is increased to 14.5 per cent from four per cent.

“The registration fees on agreements relating to deposit of title deeds, lease deeds, instrument of power of attorney to sell immovable properties are also revised upwards, which is expected to generate an additional revenue of `300 crores per annum,” the release pointed out.

- dc chennai