Proposed VAT hike is rolled back by AAP government

The Rs 46,000 crore “tax-free” budget presented by the Aam Aadmi Party government was passed in the Delhi Assembly on Wednesday with thrust on education, health and transport sectors. The budget has also rationalised the differential VAT structure, a move that is set to reduce the prices of readymade garments, sweets, watches and shoes among others. Following protests from several MLAs, the Delhi government has also rolled back the hike in VAT on footwear priced below Rs 500 and all kinds of fabric which was proposed in its Budget 2016-17. The Budget was passed with these amendments.

“It is a budget connected to the people. In the budget, we have taken care of every section of the society. Within 24 hours of proposed imposition of VAT on textile and shoes, we reversed our decision. On Tuesday, a delegation of cloth merchants had come to meet me and demanded the rollback of levy of VAT on textile,” chief minister Arvind Kejriwal said, adding his government is proactive and is prompt in taking decisions. The plan outlay has been pegged at Rs 20,600 crore, while non-plan expenditure is estimated at Rs 26,000 crore. In the budget, Rs 10,690 crore has been earmarked for education, a rise of 8.68 per cent over last year. Of this, Rs 4,645 crore is for plan expenditure, highest among all the heads.

Meanwhile, Mr Kejriwal on Wednesday said he was ready to work with the Opposition and sought Leader of Opposition Vijender Gupta’s help in getting approval of the bills passed by the Assembly, which are pending with the Centre for several months.

“There are few bills, where rule was followed but still they are pending with them (Centre). You please get these bills from them,” Mr Kejriwal told the Opposition leader in Assembly here.

Mr Kejriwal said that the city government and the Opposition will show “cooperative federalism” in the national capital.

Mr Kejriwal said he was ready to work with the Opposition as they are integral part of the Assembly.