In an attempt to make bicycles more popular mode of transport, the Akhilesh Yadav Government has decided to exempt low-cost bicycles from the VAT.
"This decision will be applicable on all bicycles costing less than Rs 3,500," the Chief Minister said in a statement issued here on Monday. Yadav said that a large number of people in the state used bicycles for transport as it was the cheapest vehicle for farmers, workers, youth, students and the poor.
"This vehicle is also commonly used by people in both the rural and the urban areas," Yadav said, adding that it was hence imperative to give impetus to economic development of such sections of society. "It is for this reason that the state Government has decided to waive VAT (Value Added Tax) on low-cost bicycles," he said.
Other than being cost effective, bicycle is also an environment-friendly vehicle that does not pollute the environment. Anyone riding a bicycle also stays healthy, the Chief Minister said.
Though bicycle is the election symbol of the Samajwadi Party, the Chief Minister got excited about this transport mode during his recent visit to the Netherlands. He has asked the Urban DevelopmentDepartment to make cycle tracks in urban areas.