To prevent people from consuming harmful tobacco products, the Gujarat government has increased VAT on cigarettes and bidis from 15% to 20%. Unmanufactured tobacco has been barred from this hike. Besides 15 percent tax has been levied on resale of vehicles.
Gujarat Finance Minister Vajubhai Vala in his budget speech today announced reorganization of tax structure for heavy vehicles to generate an additional income of Rs 730 crore. At present monthly taxes are being collected instead there would be uniform tax structure. Apart from this 15 percent of the original tax would be collected on resale of vehicles. Tractors for agriculture, auto rickshaws having capacity of three passengers have been exempted from the tax.