As a measure to promote ancillary and downstream activities in the aluminium sector, the Orissa cabinet has decided to rationalise the value added tax (VAT) imposed in sale of aluminium products in the state. While some products were attracting 4 per cent VAT, other items carried 12.5 per cent VAT. In this backdrop, the cabinet decided to enforce uniform 4 per cent tax on all categories of aluminium products. Briefing media after the meeting, finance secretary, J K Mohapatra said, the entry tax on items sold in military canteens and items required for maintenance would be phased out. Similarly, the tax on tyre re-trading, used motor car, tarpoline, plastic footwear, aviation turbine fuel has be rationalised. Considering the prevailing tax rate in the neighbouring states, the cabinet approved a proposal of the finance department to reduce VAT on tyre re-trading to 4 percent from 12.5 per cent and on used car to 2 per cent from 12.5 per cent. The Maruti Udyog Ltd had requested the government for reduction of VAT on used cars. The VAT rate on tarpoline has been reduced to 4 per cent and any footwear having a MRP up to Rs 400 would attract a tax at the rate of 4 per cent.