The Hindu Business Line : Bengal trade body to support bandh against VAT regime

The tax will not serve its purpose under the current circumstances, feels the association, which as an umbrella body represents more than 40 trade association in West Bengal.

KOLKATA, March 26

THE Confederation of West Bengal Trade Associations (CWBTA) has called for a State-wide agitation based on what it feels are inconsistent provisions of the value-added tax (VAT) system.

CWBTA has called for a 48-hour trade strike beginning March 31 in the State, supporting the strike call given by the Confederation of All-India Traders and Bharat Udyog Vyapar Mandal.

The tax will not serve its purpose under the current circumstances, feels CWBTA, which as an umbrella body represents more than 40 trade association in West Bengal.

"VAT is supposed to operate on the principle of giving a set-off against all input taxes paid... if this does not ordinarily include set-off for inter-State sales, then it will not be of any serious help,'' Mr Feroze H. Ali, President of CWBTA, observed.

The recent re-introduction of entry tax by the West Bengal Government has also come under criticism from the confederation.

The move, it is felt, is a retrograde step that will harm the interests of business and industry in the State.

"Taxation experts have already estimated manifold increase under the VAT net, and there is no need to levy entry tax,'' Mr Ali stated. In the past such tax had led to a lot of corruption, he added.

UNI adds: Mr Ali said the decision by some of the States like Delhi, Himachal Pradesh and Arunachal Pradesh to abstain from implementing VAT would affect the very objective of uniform rates of taxes.

" Some of the provisions in VAT like that in case of closing stock, exports made out of the country, threshold limit of coming under VAT and way bill in case of import of goods also needs to be reconsidered so that business does not get hampered, '' he said.

He said the Association fought for issues regarding trade enlistment certificate and was compelled to move the High Court for an interim stay. " However, still now there is non-compliance and we are thinking of moving court again on the matter, '' he said.

He said the traders would organise a national rally on April 5 and would go in for more intensive agitational forms after evaluating the response from the Government.

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