Date:24/03/2005 URL: http://www.thehindubusinessline.com/2005/03/24/stories/2005032401391700.htm

Back Diesel to cost more in Delhi

Our Bureau

NEW DELHI: The Delhi budget for 2005-06 proposes an increase of Rs 1.80 per litre in diesel prices. Drugs, medicines, tea, processed meat, poultry, preserved fruits and vegetables will attract a tax lower than the value added tax (VAT) rate.

Also, essential food items, including rice, wheat and pulses and CNG, have been exempted from VAT.

Tax rate on food served in star category hotels was slashed from 20 to 12.5 per cent.

Presenting the Budget, the Delhi Finance Minister, Mr A. K. Walia, also announced an increase in the threshold limit for the business community for registration under VAT Act from Rs 5 lakh to Rs 10 lakh.