Finance Minister Prakash Sharan Mahat said the government imposed value added tax (VAT) on onion and potato as a protective measure to boost the domestic yield of the agricultural products.
Speaking at a meeting of the parliament on Wednesday, Mahat clarified that the government through the new step to impose VAT on onion and potato has targeted to discourage the import of the agro products. Through the announcement of the budget for 2023/24, the government has slapped a 13 percent VAT on top of the 1.5 percent income tax and nine percent agriculture service charge on these important kitchen essentials.
Mahat said the black marketers following the announcement of the budget attempted to create artificial shortage to hike the prices of these products. “Consumers should remain alert from such wrong practices going on in the market,” he added.
