Jharkhand has increased the value-added tax (VAT) rate on certain motor parts from 4 per cent to 12.5 per cent and has also imposed 4 per cent VAT on towels , blankets , handkerchiefs and napkins.
Barring engines and chassis, VAT has been increased on certain motor parts, Cabinet Secretary A P Singh told newsmen here.
The decision was taken at a State Cabinet meeting chaired by Chief Minister Arjun Munda.
Earlier, the state did not impose VAT on towels, blankets, kerchief and napkins.
The imposition of VAT on these items and enhancement of the rate on motor parts would result in additional revenue of Rs 102 crore for the state exchequer, he added.