The Uttar Pradesh government has hiked the value added tax (VAT) by 0.5 per cent, a move which will make ACs, refrigerators and other such goods costlier.

The decision was taken at the Cabinet meeting yesterday and would be applicable after issuance of the notification today, official sources said.

As per the decision, in addition to 12.5 per cent VAT, which is imposed on certain items, additional tax has been increased from existing 1 per cent to 1.5 per cent.

It will make ACs, refrigerators, motor cycles, cosmetics, shampoos, sanitary goods, tiles, electrical appliances, transformers, water purifiers, cameras, mobile phones (costing more than Rs 10,000), cooked food supplements, industrial LPG, watches, cranes, cement, machinery and others goods costly.

Though the additional tax has been increased, the state government claimed that it was less as compared to the other states.