New Delhi :Utensils and wooden or timber furniture will now cost cheaper in the national capital with the Delhi government implementing more than seven per cent reduction in the Value Added Tax (VAT) imposed on such items.
The tax reduction, which came into force today, is for items falling under three categories—utensils of cutlery items made of metal (including pressure cookers/pans) except those made of precious metals, wax of all kinds not covered by any other entry of any schedule of the Delhi VAT Act, 2004 and wood and timber.
According to the government, it has been decided to slash the VAT from existing 12.5 per cent to 5 per cent on such items in keeping with the amendments approved recently by the Delhi assembly to the Delhi Value Added Tax Act 2004.
“Delhi government is of the view that the existing ambiguity in the tax structure for no valid reason needs to be rectified.
“Rationalisation of VAT and other taxes is the need of the hour and Delhi government will continue with its pro-people reforms,” a senior government official said.
The official also said that government is committed to removing the “lack” of uniformity in taxes like the VAT which is resulting in consumers paying more taxes for “no valid reasons”.