In a bid to address the concerns arising out of her recent announcement on steep hike in the Value-added Tax (Vat) on several items, Delhi chief minister Sheila Dikshit has said that it will affect only those going for luxury goods and not the common man.
Dikshit said Vat on luxury items, including high-end cellphones, watches and pens will be increased substantially in March when the budget for Delhi for 2010-'11 fiscal will be presented, a move triggered by fund shortage due to huge spending on infrastructure projects for Commonwealth Games.
"I do not know what all mobiles are there above 20 lakh, or 15 lakh or 10 lakh. I would not like to touch the person who buys them for Rs2,000 or Rs4,000. I do not want to touch a person who buys a Rs500 or Rs1,000 or 2,000-rupees watch.
"I would not like to touch a person who buys an ordinary pen. If he buys an expensive pen worth Rs10 lakh, Rs5 lakh, then I think those people can afford to give little more," the chief minister said in an interview.
Asked if her move will not prompt businessmen to move to next door states, she said the government will take appropriate measures to see that businesses do not shift to from Delhi to neighbouring places.
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