Jharkhand reduces VAT on sweets, ice cream

Sweets and ice cream will be cheaper in Jharkhnad after considerable reduction of value added tax from these two popular foodstuff.

While, Jharkhnad finance minister Raghubar Das has brought smiles on the faces of children and adults by announcing the reduction of VAT on ice cream and sweets to 4 per cent from the existing 12.5 per cent, he failed to put an end to the agitation of the petroleum dealers who demanded for reduction of VAT on diesel to 14.5 per cent from the present 20 per cent.

However, the finance minister partially rolled back VAT on diesel to 18 per cent.

Despite considerable reduction of VAT from the diesel, the petroleum dealers in the state have threatened that they would continue their agitation till the state government brought it down to 14.5 per cent. Das, who belongs to BJP, holds the post of deputy chief minister and presented the state’s annual budget of Rs 22,297.59 crore for the year 2010-11 in the state Assembly on Friday. The state’s annual budget mainly aimed at rural development, food security and social welfare.

A rural electrification programme for the poor named after former Prime Minister Atal Bihari Vajpayee was announced by the finance minister.

The state’s budget included a fund of Rs 10,304.41 crore for development schemes and the remaining Rs 11,993.18 crore for non-plan heads (salary, establishment expenditure etc),

The state government has envisaged to keep the fiscal deficit at 2.4 per cent of gross state domestic product (GSDP) against the target of 3 per cent while reflecting a revenue surplus of Rs 3,550.85 crore.