Govt amends VAT Act to exempt helmets fromlevy of tax

: The Puducherry government has exempted helmets from levy of Value Added Tax (VAT) after amending the relevant provision in the legislation.
An official source said that helmets were subject to 10 percent VAT under the VAT Act 2007.
But with the government now making wearing of helmets mandatory for two wheeler riders from May 1 this year, the tax exemption would be a virtual incentive to encourage it's use, the source said.
The exemption was earlier provided through a Government Order and became effective from October last year.
In the wake of amendment to the relevant provision in the Act, announced by the Chief Minister in the last assembly session in January, the Lt Governor's assent was obtained now for amending the Act to give the exemption statutory cover.

A special provision announcing exemption of helmets from VAT had been inserted in theAct in itsschedule.
The government had found that two wheelers accounted for a big chunk of the increasing number of road mishaps and also riders dying as they were not wearing helmets.
Hence wearing of helmets has been made mandatory from May this year.