The Delhi Government has decided to roll back hike in VAT on the purchase of low-cost footwear and textiles up to `500 as proposed in the Budget for 2016-17.

“We have decided to roll back the VAT incurred on low cost footwear and textiles costing up to `500,” said Depty CM Manish Sisodia during the Assembly session on Wednesday.

During the discussion on the Budget, AAP MlA Madan lal and Bhavna Gaur pointed out that VAT on shoes and clothing items up to `500 would not serve the poor and should, therefore, be rolled back.

“The annual Budget for this year is undoubtedly a good one. It gives huge emphasis on education as well as health sector, but talking about VAT, I would urge Finance Minister Manish Sisodia to reconsider the imposition of 5 per cent VAT on footwear and clothing items up to five per cent,” said Madan lal.

AAP MlA from Palam, Bhavna Gaur, also lauded the Budget but maintained that 5 per cent VAT on footwear and textiles up to `500 shall be rolled back in the interest of the public at large.  “People are very happy that we have lowered VAT on many articles. There was only apprehension against VAT on footwear and fabric costing below `500. Some traders came to us and told as that there is no such tax in UP and Haryana. We checked it and when confirmed, we decided to roll it back. But it shows how easily the Chief Minister and the Finance Minister are accessible to the people of Delhi. In this Government, if people’s demands are reasonable, there will be swift action,” said CM Arvind Kejriwal.

“Today, traders are saying that they used to think BJP is the party that will take care of their interests but now they have realised that it is the AAP which is the true party that has everyone’s interest in their hearts including traders,” said Kejriwal.

Deputy Chief Minister Manish Sisodia had proposed a VAT of 5 per cent on all textiles and shoes priced at below `500, triggering protests from several AAP MlAs, including Madan lal, Alka lamba and Vishesh Ravi, and BJP’s Vijender Gupta.

Sisodia had proposed rationalisation of tax on textiles and fabrics by applying uniform tax of 5 per cent on all varieties, including sarees except khadi and handloom. “At present, footwear costing above Rs 500 and school bags costing above `300 are taxable at 12.5 per cent. It is proposed to apply uniform VAT rate of 5 per cent on all kinds of footwear and school bags irrespective of their price,” he had said.

Terming the levy of five per cent VAT as an “onslaught on common man”, Gupta had on Tuesday warned the Delhi Government that if this tax proposal is not withdrawn, he would launch a State-wide agitation against it.