Rice, paddy, wheat, products of rice and wheat and pulses will continue to be exempted from VAT. Petrol and diesel will continue to attract 33 per cent and 25 per cent tax respectively, still among the highest rates in the country.
However, traders who were expecting some exemption on special entry tax were in for disappointment. Special entry tax will continue on certain commodities.
Entertainment will also cost the same. Luxury tax and entertainment tax which come under the commercial taxes department too have been left untouched.
According to the revised budget estimates 2007-08 tabled in Parliament on Monday, the receipts from commercial taxes department is likely to fall short by Rs 500 crore. The department was set a target of Rs 16,993 crore for 2007-08.
However, experts feel that the department was set too high a target last year requiring a growth of 22 per cent when the growth in the economy was around 10 pc.
They also feel the department could easily achieve the target by way of a tax compliance drive during the next two weeks.
For the financial year 2008-09, the department has been given a target of Rs 19,344 crore which represents a growth of 17.42 per cent over the revised estimates of 2007-08.