Vat increase will not lead to price rise, says Assam government

GUWAHATI: Assam government has denied that hike in the VAT of some commodities will led to price rise.

The state government has hiked VAT on several commodities which led to protests.

In a statement, the government stated that many items including medicine are governed by MRP system, therefore one per cent increase in tax rate wil not cause any increase in price, as consumer will continue to pay the same MRP. Hence, this will not put any additional burden of tax on consumer.

The statement added there will be no inflationary impact on the common men and consumers as the MRP of these goods is not changed.