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Cut in VAT to make milk products, sweets cheaper
November, 22nd 2012
Sweets and other milk products like butter and cream will soon get cheaper, with UT finalizing a proposal to bring down value added tax (VAT) to bring it on a par with the rates in Punjab. A decision in this regard was taken at a meeting of the advisory committee on VAT which took up representations from various traders' organizations too.

In UT, 5% VAT is charged on sweets, which is not the case in the neighbouring state. There had been a demand that it should be scrapped. Similarly, VAT on cream and butter is 12.5% and on desi ghee, it is 5%. There is no VAT on milk in UT, whereas it is 5% on "paneer". It was decided that uniformity would be brought in VAT on cream, butter and desi ghee, by charging 5% on each of these.
 
 
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