BHOPAL: The Federation of Madhya Pradesh Chambers of Commerce and Industries on Thursday, demanded simplification of VAT in the state to help the people and the industries at large. “When VAT was introduced, both the central and state governments said it will be the only tax applicable, but things are not like that in reality,” FMPCCI senior vice president Govind Goyal told reporters here.

Despite the introduction of VAT, there were still many other taxes in force in the country, Goyal said. There should be a uniform tax rate all over the country as this will ensure that there is no tax evasion and goods are available at the same price from Kashmir to Kanyakumari, he said.

The Federation had submitted a number of proposals to the finance minister of the Madhya Pradesh government for inclusion in this year’s budget, including the reimbursement of tax to the wine dealers as VAT is charged from dealers as well as bars, he mentioned.He said that the government wants to bring goods and services tax (GST), the federation welcomes it but its rate should be same throughout the country. The manufacturer of the state has to give entry tax on raw materials as well as VAT on the sale of finished goods and the purchaser has to again pay entry tax due to which the final cost of the product increases.

Referring to anomalies in taxation, Federation’s Managing Committee member S K Somani said that form 49 should be abolished. Many times the department restricts the limit of downloading the form 49 of a businessman and sometimes even makes it nil without giving him a hearing. At least the department should specify the reasons for the penal decision taken.

He said that the government introduced lease tax on the builders for the property given on rent while he is already paying service tax, municipal corporation tax and other taxes. The federation has requested the government neither to increase any tax nor to introduce any new tax in the coming budget.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal