High rate of tax for edible items

High rate of tax for edible items:

In India, it is pointed out that value added tax (VAT) levied high for edible items rather than ornaments. From April, 2005 value added tax came into force by replacing sales tax. Around 550 items introduced with VAT, among this 4% VAT for 270 items and remaining levied with 12.5% VAT. For jewels and ornaments only 1% VAT is levied.

In wholesale diamond jewels and stones business, only 4% items are properly billed and sold . Critics pointed out that, for diamond jewels, Britain levying 17% VAT and Sweden levying 25% VAT .