Bitter gift for New Year: Odisha hikes tax on luxurious items

Now, two wheelers, refrigerator, air conditioner, television, cement, soap, detergent and cream will be costlier

BHUBANESWAR: The Odisha cabinet on Thursday approved to enhance the Value Added Tax (VAT) on goods from 13.5 percent to 14.5 percent expecting to generate an additional revenue of Rs 280 crore per annum.

The government aims to generate additional revenue of Rs 70 crore this financial year.

The increased VAT will be imposed on unspecified goods including luxury goods-plant machinery, equipment, commercial vehicles, bus, truck, four wheeler, two wheelers, refrigerator, air conditioner, television, cement, soap, detergent, cream and lubricant.

Besides, the cabinet approved a proposal of the Excise Department for levying 10 percent surcharge on foreign liquor that would facilitate the government to generate more excise revenue to a tune of around Rs 140 crore per annum.

The government increased the tax from existing 25 percent to 35 percent.

The rate of tax for foreign liquor whether made in India or not, including Brandy, Whisky, Vodka, Gin, Rum, Liquor, Cordials, Bitters and wines or a mixture containing any of these, as also Beer.

The cabinet approved a proposal of the Health and Family Welfare department regarding relaxation in the recruitment of Ayush Assistants. As per the decision, new recruitment will be done on the basis of 30 percent career mark and 70 percent written test.

Similarly, a separate Ispat (Steel) Directorate would be set up while simplification long-term mineral linkage policy was approved. The Steel and Mines Department had brought the proposal.

The cabinet approved its nod for no imposition of VAT on items purchased under Deen Dayal Gramyoti Yojana. The amendments to the Odisha Administrative Rules were also got the cabinet nod.

The cabinet also approved a proposal brought by the Skill Development and Technical Education Department for an amendment to Section-3 of the Odisha Professional Education (OPE) Act thereby empowering the state government to decide the avenue for admission in the Engineering stream.