The much dreaded Delhi Value Added Tax (Amendment) Bill, 2009 raising the slab of 4 per cent to 5 per cent, was passed by voice vote in the Delhi Assembly today. The Bill was passed unopposed as the Opposition BJP had walked out during Chief Minister Sheila Diksh*t's reply to the No-Confidence Motion moved by Leader of the Opposition Vijay Kumar Malhotra. The BJP-led Opposition was against the Bill that was introduced on Monday. The Bill will impact the prices of medicines, medical and surgical equipment, IT and electronic products such as computers, software and products under the industrial inputs among other things. Finance Minister A K Walia said it incorporated certain provisions to address the urgent need to remove some fresh anomalies and discrepancies which had come to the notice in the course of the implementation of the Act. The Centre had asked the state government to raise VAT rate to partially compensate the loss incurred due to phasing out of central sales tax. However, the Confederation of All India Traders (CAIT) came down heavily against the passing of the VAT Bill with its Secretary General Praveen Khandelwal saying, ''Delhi government just wants to collect extra unjustified revenue. The government must clarify this. On account of loss of revenue due to phasing out of Central sales tax, the Delhi government has already been compensated by the Union government with Rs 700 crore.'' The CAIT said it would appeal to the Lt Governor, Union government and the Leader of the Opposition in Lok Sabha L K Advani to ensure the deferment of the Bill in the larger interest of the people. Besides the VAT Bill, the Delhi Assembly also passed the Delhi Entertainment and Betting Tax (Amendment) Bill, 2009. The Bill brings equity in the taxation system between the subscribers of cable TV and DTH services and will earn additional revenue from entertainment through DTH. It will bring an additional revenue of Rs 7.2 crore per annum. The (Incredible India) Bed and Breakfast Establishments Registration and Regulation (Amendment) Bill, 2009 was also passed in the Assembly. The amendment clearly defines the term 'breakfast' as only breakfast and not any other meal. Under the amendment, only those owners who are actually residing in the premises along with their families are entitled to get their premises registered under the original Act. It makes documentary evidence of their residential proof mandatory. It also increases the total number of rooms which can be registered under this act to six double bedrooms from earlier five double bedrooms, subject to the condition that not more than two-third of the total bedrooms can be considered for registration.
