Green govt slashes VAT on CFLs
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25/03/2008
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Times Of India (New Delhi)
In what comes as good news for those rallying for energy conservation, the government has announced a tax cut on compact fluorescent lamps (CFL) and BIS certified or BEE star rated electronic chokes. Value Added Tax has been brought down from 12.5% to 4%. However, that amounts to a reduction of only about Rs 3 in the price of each CFL, bringing down their price to roughly Rs 77. Even then, the move is being hailed as positive. The industry has been demanding that the government bring about some parity between the pricing of CFLs and incandescent bulbs. While bulbs are available for between Rs 10-15, CFLs have come down to about Rs 80-100 from Rs 120-150 some months ago. Different states have different tax levels on CFLs and unless all are brought to one level, say experts, no significant change in pricing will be felt.