After protest from the business community, the state government has to withdraw the VAT (Value Added Tax) from sugar and cloth.
On Friday, the cabinet meeting held and presided by CM Naveen Patnaik, along with the Chief Secretary and other department heads, decided not to impose 4 per cent VAT on sugar and clothes.
Chief Secretary confirmed that like other states, where VAT is not effective, in Orissa it will not be imposed on sugar and clothes. But regarding kerosene and diesel, the structure of VAT stands as usual but a relief to consumer of Orissa is that 4 per cent VAT on LPG is also waved off.