Industry & Economy
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Taxation
Kerala restores tax sops to defence canteens
Our Bureau
Thiruvananthapuram
,
Aug. 18
THE Kerala Government has decided to restore tax concessions on sales at defence canteens in the State from Friday.
The Finance Minister, Mr Vakkom Purushothaman, said here on Thursday that 50 per cent reduction in sales tax on liquor and 50 per cent cut in value-added tax (VAT) on other items would once again be available to service and ex-servicemen for purchases at the canteens.
He said that a notification to allow the sales tax concession on liquor and an Ordinance amending the VAT law for providing concession on other items would be issued immediately.
The Minister said that the concessions had been withdrawn earlier in consultation with the Defence Ministry, following the introduction of VAT. However, the Empowered Committee on VAT had allowed the State to restore the concessions on the basis of representations made by Punjab and Delhi.
He said that though he felt many were misusing the concessions, the decision to restore them was taken in the wake of representations from many quarters. The resulting revenue loss would be Rs 30 crore a year.
The Minister said that the Government's excise revenue had risen following hike in liquor prices.
He would convene a meeting of excise officials on Friday to check the sale of illicit liquor during Onam. Directives had also been issued to check sale of arrack through toddy shops, he added.
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