In its bid to bring down the escalating sugar prices the state government decided to do away with the 4% VAT levied on imported sugar till June 30,2010.
The state consumes close to 22,000 sacks of sugar on a daily basis of which Jaipur consumes close to 7,000 sacks and the decision would imply that sugar prices will be reduced by Rs 2.00.
Chief secretary C K Mathew said that a couple of days ago The Centre had directed all the states to do away with VAT on imported sugar. The decision will ensure that in a day or two the wholesale prices might fall to Rs 38.00.
However, the prices at state -run ration shops will not be affected by this decision as VAT is not imposed on such sales.
The state government made it clear that the decision will be reviewed after five months and if required changes will be made.