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Maharashtra to implement 4% VAT based on MRP of drugs from April 1
Our Bureau, Mumbai | Thursday, March 31, 2005, 08:00 Hrs  [IST]

Maharashtra along with states like West Bengal, Orissa and Kerala will be introducing 4 per cent, first point VAT based on MRP from April 1.

The traders and the government in these states have reached on a consensus to this effect, according to AIOCD.

"Maharashtra along with West Bengal, Orissa and Kerala will be introducing the 4 per cent one point tax staring from April 1. The pharma traders in these states have assured full co-operation for a smooth passage into the new taxation regime," said JS Shinde, secretary, AIOCD.

Among the other 16 states, many of them would pass the relevant bill in their respective assemblies today.

Although states like Andhra Pradesh and Karnataka have cleared VAT bill, there is still ambiguity whether to allow the single point taxation on medicines, in these states.

"If governments in these states are not able to make a concrete decision on the issue by today evening, traders in these states would resort to a two day strike from April 1, followed by stoppage of drug purchase till their demands are met," said a senior AIOCD official.

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