Delhi government on Saturday decided to keep army canteens in the national capital out of the value added tax net and exempted nine more items, including khadi garments and commodities sold under the PDS system except kerosene, from the newly-implemented tax regime.

It was also decided at the meeting of the Cabinet, chaired by Chief Minister Sheila Dikhsit, to rename the Delhi Sales Tax Department as Department of Trade and Tax.

The Crisis Over VAT

"The exemptions and reductions announced are in tune with the decisions taken at the high powered committee on VAT," Delhi Finance Minister A K Walia told reporters after the Cabinet meeting.

Among the items on which exemption was announced include khadi garments, bags, oilseeds, jaggery, goods sold under the PDS system except for kerosene, plastic scrap and customs items.

It was also decided to expand the list of industrial inputs in the four per cent tax category from 159 items to 217.