THIRUVANANTHAPURAM: The Government has decided to restore tax concessions on sales from military canteens from Friday.

Finance Minister Vakkom Purushothaman said here on Thursday that 55 per cent reduction in sales tax on liquor and 50 per cent cut on value added tax (VAT) on other items would be available to the servicemen and ex-servicemen from the canteens, on the same lines as before.

The Minister said that the concessions had been withdrawn, in consultation with the Defence Ministry, following the introduction of VAT. However, on the basis of representation by Punjab and Delhi, the Empowered Committee on VAT had allowed State to restore concession.

Mr.Purushothaman said that though he held the view that many were misusing the concession, a decision to restore it was taken in view of representations from many quarters. The total revenue sacrificed was of the order of Rs.30 crores a year.

He said that a notification would be issued immediately to allow the concession on liquor and an Ordinance amending the VAT law for providing concession on other items with effect from Friday. He said he would convene a meeting of excise officials on Friday to check sale of illicit liquor during Onam.

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