WB raises 12.5 percent VAT slab by 1 percent

The West Bengal Assembly today passed a Bill raising the 12.5 per cent slab of VAT to 13.5 per cent with the government saying that the rise will bring an additional revenue of Rs 225 crore to the state exchequer.

Replying to the West Bengal Taxation Laws (Second Amendment) Bill, 2010, Finance Minister Asim Dasgupta said although the Centre allowed the states to increase both 4 per cent and 12.5 per cent slabs of VAT by one per cent, the state government did not do so owing to price rise of essentials.With the prices coming down last month, the government issued an ordinance on November 12 announcing the increase of the 12.5 VAT slab to 13.5 per cent, he said.

The ordinance was necessiated as the Assembly was not in session then.