Assam government increases VAT by one percent; Cosmetics, AC becomes costly
September, 19th 2013
Increase in the VAT is likely to dampen the spirit of festive season which has just begun. Assam government has increased the VAT on fifth schedule items by one percent. VAT on light diesel oil and high speed Diesel, kerosene oil sold through modes other than fair price shop, cosmetics, perfumery and toilet goods including soaps, shampoos and hair oils were increased from 12.5 % to 13.5%.
The state government by a notification dated 13-09-2013 has increased VAT on at least 43 categories. Industry bodies stated this will trigger further price rise and put unnecessary burden on common men.
R S Joshi, Chairman of Federation of Industry and Commerce of the North East Region (FINER) said this increase in the VAT appears to be unjust in the situation that there is economic slow down and the market is already fighting with price rise. "This increment will add to cost and price escalation and this additional burden of tax will make bigger hole in the pocket of general public."
Schedule fifth includes motor vehicles including chassis of motor vehicles and motor bodies, but not including tractors tyres, tubes, accessories, component parts and spare parts of motor vehicles, motor cycles, motor cycle combinations, motor scooters, two wheelers and three wheelers, refrigerators of the capacity above 170 litres.
Joshi said this increase will be dampener at a time when the festive season has just started. "This schedule includes air-conditioning and other cooling appliances and apparatus excluding air coolers and water cooler, all kind of cooking appliances, cooking ranges, microwave ovens and grilles, vaccum cleaners, electrical and electronic air purifiers and dish washers, television sets, video cassette recorders, video cassette players, CD players, home theatres, Washing machines, Room air convectors and air circulators, Voltage stabilizers, inverters and transformers, transmission towers, electronic toys and games, all type of cutlery including knives, forks and spoons."
All goods made of glass including glassware, Utensils, kitchenware and tableware made of glass or chine clay, Glazed earthenware, Chinaware including crokery, Picnic set sold as a single unit, Iron and steel safes and almirahs.
Even telecom sector which is in expansion mode in Assam will feel the pinch as tax on telecommunication equipment including telephones is increased.
The schedule also includes cinematographic equipment including cameras, projectors and sound recording and reproducing equipment and spare parts, component parts and accessories required for use therewith and lenses, films and cinema carbons, foreign made watches, electrical time switches and mechanical timers and component parts, spare part and accessories thereof.
All arms including rifles, revolvers pistols and ammunition for the same and component parts and accessories thereof but not including 12 bore shot-gun ammunition, Cigarette cases and lighters, binoculars, telescopes and opera glasses and component parts, spare parts and accessories.
The increase will impact Leather goods, furniture including iron and steel and moulded furniture, Cushion and mattresses of foam, including foam sheets, pillows and other articles made from foam rubber or plastic foam or other synthetic foam, furs and skins with fur and articles made therefrom including garments made thereof, articles made of stainless steel, lifts and elevators of all kinds.
Even Eatables including meat, fish, fruits and vegetables when sold in preserved form, Silk and garments made of silk, musical instruments, Paints and colours and imported Vanaspati cost has increased.