Maharashtra government has given into the demand from various quarters including farmers and slashed the VAT back to 4% from the recent increase to 25% while the imported wines will attract the duty of 20% instead of 25%. The decision was taken at a special cabinet meeting convened Wednesday in Nashik. A decision was also taken to continue with the existing policy for another 10 years. It will now expire in 2021. The policy will continue with special excise benefits to the wineries in Maharashtra.
The Agriculture Minister Sharad Pawar had said earlier that he would demand a bailout package at this cabinet meeting in Nashik on July 22. It appears that he was instrumental in prevailing on the decision makers of Maharashtra.
Also, the Assembly elections are to take place in September/ October and the decision could be to win the electorates.
DelWine had written an article about VAT in the edition no. 317. This change is after the article was posted and is thus significant.
