The Hindu Business Line : Maharashtra traders oppose VAT

At a seminar on the VAT Act (Maharashtra Value Added Sales Tax Act, 2002), called by the Federation of Associations of Maharashtra (FAM), they were vociferous in their opposition to the Act, which they fear will wipe out their businesses and, with that, their livelihoods. Naturally, all calls for trader unity and united action were greeted with lusty claps and cat calls.

"Such an Act will only serve to drive us from the State, which has already seen several businesses shift to other parts of the country," cried one of the participants. "We will bring the Government to its knees if it goes ahead with the move," yelled another.

Amidst the noise and clamour, representatives from all sections of trade tried to make known their grievance against the impending tax regime. A common grievance was the fact that there was little information on VAT. And they alleged that Government officials were as ignorant of the facts as they were!

Also, they felt the decision to reintroduce VAT (in existence between 1995 and 1999) was uncalled for. "It is yet another attempt to copy a Western concept," said one of the participants. However, while Western countries have a single tax, the advent of VAT in the country will not be accompanied by the immediate scrapping of other levies.

The Federation Treasurer, Mr Kishore Kharawala, told Business Line that though VAT was being reintroduced to create a single point tax, in the present case it would not be accompanied by suspension of other taxes, such as entry tax and octroi. He said there was no standardisation of forms across States and that the proposed tax was a modified version of sales tax.

Referring to the emphasis on audits in the VAT system as opposed to assessment in the current tax regime, he said the new tax structure would vest a lot of power in the hands of the assessing officers, leaving the traders open to harassment by them. This would in effect usher in the "inspector raj" once again.

The Federation, which represents trader bodies from across the State, would undertake a token bandh on March 20 if the State did not reconsider the launch of VAT, Mr Kharawala said.

Article E-Mail :: Comment :: Syndication

Stories in this Section
UNEP ties up with banks to boost solar home systems

Citric acid imports brought under dumping duty

Jaswant's just a click away

Asbestos cement producers resent `vilified campaigns'

Kerala: Bill to prevent defacement of places

Sand turns a scarce commodity

Germany keen to boost trade ties

Discussion on bio-larvicide put off

It's a good innings for hotels too

High land prices a hurdle for Mangalore SEZ plan

Goshree project: March to HLL premises planned