Edible oils to cost more in Gujarat

By Our Special Correspondent

GANDHINAGAR, DEC. 31. Edible oils, sweetmeats, readymade garments, computers and other electronic instruments, television sets and motor vehicles will be among the items becoming dearer in Gujarat from tomorrow with the increase in sales tax rates to keep up with the Centre's decision for the floor rates of sales tax all over the country.

The ordinance effecting hikes in sales tax rates on about 45 items was signed by the Governor, Mr. Sunder Singh Bhandari, here today to come into force from tomorrow for an uniform rate of taxes to avoid an ``unhealthy inter-state competitions.''

Announcing this, the Finance Minister, Mr. Vajubhai Vala, tried to allay the ``misgivings'' of the Gujarat Chamber of Commerce and Industry and the trade and business circles that the Centre's directive on the floor rates would cause an additional burden of over Rs. 4,000 crores in a year on the consumers in the State. Mr. Vala claimed that the hike in sales tax rates was estimated to bring in additional only about Rs. 150 to Rs. 200 crores to the state exchequer in a full year.

He said out of the sales tax income of about Rs. 4,810 crores in a year, there was no change in the tax structures on the items fetching a revenue of about Rs. 4,400 crores. The increase was only on the items on which the sales tax revenue was about Rs. 400 crores earlier, he said.

The Chamber which had given a protest ``bandh'' call for tomorrow has withdrawn the call after their ``misgivings'' about the additional hikes was cleared at a meeting the Chamber officials had with the Chief Minister, Mr. Keshubhai Patel, last night, Mr. Vala said.

The decision to impose floor rates on sales tax on about 205 items applicable to all the states and also the union territories was taken at a meeting of the Chief Ministers held in Delhi on November 16 to avoid an unhealthy competition among States.

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Section  : Regional
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