VALUE ADDED TAX
Item that becomes TAXFREE
Ceramic products: from current rate of tax 15% including additional tax to 5% including additional tax
Vehicles purchased by institutions (Institutional purchases) increase the rate of tax from current rate of tax 15% to 20% on the vehicles (except school buses, college buses, passenger buses and goods trucks) purchased by Companies, Firms, Institutes, Associations, Trusts, Government departments, Boards‐ Corporations, Local Self Governments, etc.
The proposed increase will not be applicable to purchases made by individuals for personal use.
Luxury car/ SUV and luxury two wheeler
Normally, luxury cars/SUVs and luxury two wheelers are used by economically sound people. Therefore budget propose to increase the rate of tax from current rate of tax 15% to 20% on luxury cars/SUVs with price more than ` 15 lakhs and luxury two wheelers with price more than ` 2.5 lakhs
Pan Masala now tax at 25% from the present rate of 15%
Industrial Salt to be tax at the rate of 5% on usage in manufacture of goods