Bhubaneswar: The Odisha cabinet on Thursday approved the extension of time for a period of another three months to reduce the rate of value added tax (VAT) on pulses and all kinds of dals.
The state government had in July reduced VAT from 5 per cent to 1 per cent for a period of three months.
There was a demand from trade and industry to keep in control the price rise of this essential commodity.
The government reduced the tax on pulses to make an assessment of the impact of tax reduction on the market.
Development Commissioner R. Balkrishnan said the price of dals has come down by 20% in the month of September following the reduction of tax.