Himachal Pradesh Increases VAT on Luxury Items

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Jul. 19 – The north Indian state of Himachal Pradesh has announced that it would increase value-added tax on luxury goods from 12.5 percent to 13.75 percent beginning July 15.

The higher tax will apply to goods classified under the Part III of Schedule A. Excise and Taxation Commissioner Jagdish Sharma said that petroleum products and basic food items would be exempted from higher VAT.

“Electrical, sanitary and hardware goods, mobile handsets and luxury items would be costlier in the state,” Sharma said.

Neighboring states including Andhra Pradesh, Rajasthan, Assam, Uttar Pradesh, Punjab, Uttarakhand, and Jammu and Kashmir have already raised the standard VAT rate.