Haryana: 5% VAT, as much surcharge on 'bidis'

The Haryana cabinet on Friday decided to levy 5% value-added tax (VAT) as well as surcharge at a rate of 5% on the sale of 'bidis' in the state with immediate effect.

The Haryana cabinet on Friday decided to levy 5% value-added tax (VAT) as well as surcharge at a rate of 5% on the sale of 'bidis' in the state with immediate effect.

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Accordingly, the entry 9 of Schedule A and entry 55 of Schedule B of the Haryana VAT Act, 2003, would be suitably amended, the cabinet held. Even though there was no tax on sale of 'bidis' in the state so far, the finance department had proposed to levy 10% VAT on it, but the cabinet decided on 5%.