Consumers goods and electronics items will cost more in Uttar Pradesh from June 1 as the state government has decided to impose an additional tax (AT) up to 1 per cent under the Value Added Tax.
The new AT will be imposed on commodities on which tax at a rate of 4 per cent and 12.5 per cent is already being charged under the VAT Act, a senior tax department official said today.
"A notification to this effect had already been issued by the Law department and subsequently an order had also been issued by the Tax and Registration department," they said.
With the imposition of AT, prices of a number of consumer goods like drugs and medicines, edible oils, bicycles, hosiery goods, invertors, milk products, moulded plastic footwear, readymade garments, tea, toys, sports goods and electronic items including cell phones will increase slightly.
Half per cent AT will also be charged on industrial inputs, which are also taxable at the rate of 4 per cent. one per cent AT will be imposed on non-categories commodities covered in schedule five of the VAT Act, on which 12.5 per cent VAT is being charged by the state government.
These items include consumers durables and electronic items like TV, refrigerator and air conditioners.