Central Government proposes crucial amendment to VAT Act

Central Goverment has proposed an amendment in the Value Added Tax (VAT) Act. 

According to the amendment, if passed, the cabinet will get powers to increase VAT on 11 products by an order. The cabinet will not have to get an assembly approval. 

These 11 products are: petroleum products, Liquor, country liquor, narcotics, molasses, Rectified Spirit, lottery ticket, brake fluid, tobacco and gutkha, aerated drinks, and watches above Rs 5000.

These products have flat 20% VAT right now but as per amendment, VAT can be upto 30% on these products.