Utensils and wooden furniture will become cheaper in the national Capital with the Delhi government announcing more than a seven per cent reduction in the Value Added Tax (VAT) imposed on such items, said a statement issued on Saturday.
On the other hand, going to the spa, gymnasium and living in expensive hotels will become costlier due to an increase in luxury tax.
The tax reduction, which came into force on Saturday, is for items under three categories — utensils or cutlery items made of metal (including pressure cookers and pans), except those made of precious metals, wax of all kinds not covered by any other entry of any schedule of the Delhi VAT Act, 2004, and wood and timber.
According to the government, the decision to slash the VAT from 12.5 per cent to 5 per cent on such items is in keeping with the amendments approved recently by the Delhi Assembly to the Delhi Value Added Tax Act, 2004.
“The Delhi government is of the view that the existing ambiguity in the tax structure for no valid reason needs to be rectified,” the statement said.
“Rationalisation of VAT and other taxes is the need of the hour and the Delhi government will continue with its pro-people reforms,” it added.
