Till December 31, trade tax was 12 per cent. Now, the tax is pegged at 4 per cent on footwear items costing up to Rs 300. This decision was taken at a meeting of the state Cabinet on Friday.

AICC general secretary and Amethi MP Rahul Gandhi has recently objected to the high tax and written to CM Mayawati urging her to reduce the tax on footwear.

Rahul had pointed out that the low tax rates on footwear will be a big relief for the artisans who come from the most backward section of society. The state government exempted over three-dozen products from VAT while slashed the tax on several products.

Addressing the media chief minister Mayawati said the government has decided to exempt or reduce the tax rates on several products following demands from different quarters.

Now, wheat flour and other wheat products, tyres used in carts, jaggery, bangles, bio-fertilisers, rudraksh and items used for religious programmes had been made tax-free.

Mayawati said exempting cotton and silk yarn from VAT would help weavers. Items used from bamboo, newspapers and newsprint have also been exempted. Raw material used in khadi products has also been exempted from VAT. Raw material used in manufacture of Banarasi saree has also been exempted from VAT.

For promoting the agro forestry, VAT on plywood and black board has been reduced from 12 per cent to 4 per cent.

For the poor section of society engaged in trade of collecting the hide and bones of the cattle have also been exempted from VAT.

The VAT at the rate of 4 per cent will be levied on Plastic products like mug, bucket, soap case and medical equipment like contact lenses and spectacles frame. The other products under these categories are school bags, greeting cards, calendars and molasses.