Uncategorized

Himachal increases VAT on luxury items

Shimla, July 14 (IANS) Luxury goods will become costlier in Himachal Pradesh as the government has decided to increase the value-added tax (VAT) from Thursday, an official said here Wednesday.

‘VAT on certain luxury items has been increased to 13.75 percent from 12.5 percent,’ Excise and Taxation Commissioner Jagdish Sharma told IANS.

He said food items and petroleum products were exempted from VAT.

‘Electrical, sanitary and hardware goods, mobile handsets and luxury items would be costlier in the state,’ the official added.

The Himachal government has issued a notification to enforce the new VAT rate.

Meanwhile, the retailers said the tax rise would encourage traders to move stocks from neighbouring states.

Leave a Reply

Your email address will not be published. Required fields are marked *