The Haryana Chief Minister, Bhupinder Singh Hooda today announced to exempt wheat, being given to beneficiaries of Antodya Anna Yojana (AAY) under Targeted Public Distribution System (PDS), from Value Added Tax (VAT).
The Chief Minister said the decision would benefit such beneficiaries to the tune of about Rs 1.50 crore in a year.
Hooda said the state government is already giving a subsidy of Rs 6.35 crore on wheat being given to AAY beneficiaries. The state has also abolished VAT on distribution of kerosene oil under PDS, according to an official release here.
The decision to exempt wheat from VAT for AAY beneficiaries has brought its price in conformity with the directions of the Central Government, which is Rs two per kg, the release said.
At present, VAT at a rate of five per cent is being charged which comes to Rs 12.50 per quintal.