Chandigarh, February 22
Slashing of sales tax on several items, imposing of tax on lotteries and amendment to conduct rules for Civil Services were among the major decisions taken by the Punjab Cabinet at its marathon meeting here tonight.

The long due Cabinet meeting, which followed election of the Chief Minister , Mr Parkash Singh Badal’s son , Mr Sukhbir Singh Badal, to the Rajya Sabha earlier in the day , continued for more than four hours.

With an eye on the ensuing Assembly elections later this year, the Cabinet had a long agenda, including some of the pending important issue pertaining to slashing of sales tax .

The Cabinet also unanimously resolved to urge the Union Government to revise the Minimum Support Price on the basis of the recommendations of the state government. The Punjab Government had recommended Rs 735 per quintal. The Union Government, however, wanted not to make any increase in the MSP of wheat this time. The MSP for wheat last year was Rs 580.

The Chief Ministers of both Punjab and Haryana had met the Prime Minister on January 24 in the union Capital to demand Rs 735 as MSP for wheat.

The Cabinet gave its approval to exempt the halwais from payment of sales tax besides deciding to reduce it on several items like computers, edible and non-edible oils, pickle plastic chappals, dal, tractor and combine harvester parts, utensils, sweetmeats, cooking gas, organic manure and a few other items.

According to the information available, the Cabinet decision today would lead to lowering of sales tax from 6 to 8 per cent to 4 per cent on bicycles, rickshaws and tricycles.

On edible and non-edible oils it would be brought down to 4 per cent from the existing 6 to 8 per cent and on pickles, chatni, jam and pappad-varian, it would be slashed to 4 per cent from the existing 6 to 12 per cent. On computers it would be reduced to 4 per cent from 8 per cent and on jewellery and precious stones, it would be cut to 1 per cent from 8 per cent and on plastic chappals, the new rate of sales tax would be 4 per cent against 8 per cent.

On all types of utensils, sales tax would be cut to 4 per cent from the existing 8 per cent.

On pulses (dals), it would be brought down to 1 per cent from the existing 3 per cent. On rice bran, the sales tax would be completely withdrawn from the existing 8 per cent.

On the tractor and combine harvester parts, the new rate of sales tax would be 4 per cent against 8 per cent now on organic manure there would be no sales tax.

On bone meal, polythene bags and ball bearings, it would be lowered to 4 per cent from 8 per cent. On LPG, the new rate of sales tax would be 8 per cent and not 10 per cent.

After an animate debate , the Cabinet also decided to levy tax on lotteries following a prolonged battle between the Finance Department and the Excise and Taxation Department over the issue.

It was decided to levy 30 per cent sales tax on the profit earned by the Directorate of Lotteries. The Excise Department had been strongly advocating for the imposition of tax on lotteries while the Finance Department had been opposing it . Earlier, proposal was to impose sales tax on lottery tickets at the rate of 20 per cent.

The Excise Department hopes to get Rs 30 crore from tax on lotteries alone.

Further details about the tax and its modalities would be worked out later.

In another significant decision, the Cabinet also approved amendments to the conduct rules of civil servants. Now under the amended rules, no civil servant could employ any one below the age of 14 years as a domestic help.