Himachal to lower VAT partly

VAT'S THE ISSUE/ FOODS & DRINKS

Much to the relief of locals and tourists, the Himachal Pradesh government has decided to lower the value-added tax to 4 per cent on several food and drinks.

This will cover a variety of items that have been paying 12.5 per cent VAT since April.

"This decision has been taken keeping in view the fact that Himachal Pradesh is a tourist destination," said Narendra Chauhan, the state excise and taxation commissioner.

"The government has also exempted carbonated soft drinks from VAT, besides all organic and chemical fertilisers," he said.

"The rate of tax on arms and ammunition has been reduced to 12.5 per cent," he said.

Quilts, bed sheets, pillow cases, and slippers cottage cheese among other goods have become cheaper due to the lowering of VAT.