The Hindu Business Line : Kerala puts off VAT

THE State Finance Minister, Mr K. Sankaranarayanan, has said that introduction of value-added tax (VAT) regime in the State is being deferred since most other States, including the Southern neighbours, are not in a position to come up with a proper implementation package of their own by the stipulated April 1 deadline.

An official spokesman quoted the Minister as saying that the State Government has been bracing itself for the introduction of VAT, along with others, as per the common understanding reached at the national level.

The State Government had made it abundantly clear that the new regime would be put into place in conjunction with other States only. But, it had by now become apparent that most of them have not been able to formulate their VAT strategies.

The Finance Minister said that no new directive on implementing VAT has been received from either the Centre or the Empowered Committee of the State Finance Ministers. Given these circumstances, the State had no option but to defer the VAT implementation schedule till such time as the other States finalised their own.

Traders defiant: Meanwhile, the Vyapari Vyavasayi Ekopana Samithi, the frontal organisation for the trading community in the State, has made it clear that there is no going back on the move to close down commercial establishments for 48 hours from March 31 to protest the implementation of VAT in the State.

According to Mr T. Naziruddeen, President of the organisation, the Finance Minister has, by his own admission, only chosen to `defer' the implementation to a future date.

There is no mention of any proposal for scrapping the policy, as had been demanded by the association. Under the circumstances, the Samithi has no option but to go ahead with the proposed strike plan on the two designated days.

The President of the Kerala Small Scale Industries Association, Mr Thomas Kondody, and the General Secretary, Mr Damodar Avannoor, have also demanded that the VAT law be subjected to open and frank deliberations to provide an opportunity to the general public to come to terms with its implications.

The association held demonstrations at all the 14 district centres to press its demand.

Members of the State Hotel and Restaurateurs Association took out a protest march to the Government Secretariat here against implementation of VAT.

The association has extended support to the move to close down businesses for two days. It has demanded repeal of the Building Lease Bill 2002 and the directive of the Government to shut down bar hotels on the first day of every month from the new financial year.

Meanwhile, a Kochi report said the Ernakulam district unit of the Kerala Entrepreneurers Forum today held protest rallies and dharna against VAT in front of the Vyapari Bhavan office here.

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