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Chandigarh - CM hasn’t delivered on VAT promise, rue businessmen

The local industrialists are sore that Chief Minister Parkash Singh Badal, who is also the incharge of the excise and taxation portfolio, has failed to keep the promises he made during the meetings held with them in recent past.



 

According to the wholesalers, while on one hand value added tax (VAT) on pulses has not been reduced from 4% to 1% as promised by the CM, on the other he has deprived the state coffers of much needed revenue by not imposing 1% VAT on besan, although the manufacturers and even the traders have expressed their willingness to pick the tab.

A special deputation of Beopar Mandal had met the Chief Minister about one and a half years ago and the CM had reportedly agreed to both these demands in November last year. However till date, no notification has been issued on any of the issues, rue the mandal members.

Mohinder Aggarwal, general secretary of Beopar Mandal, Ludhiana branch, said, “There is no VAT on pulses in the neighbouring states of Punjab and this way, already Punjab is loosing crores of revenue because the traders bring the product from Delhi or other states to avoid 4% VAT. Still, our members agreed to pay 1% tax, but it has not been notified till date. We had reminded the CM about the matter in the sangat darshan held in the city as well, but with no result.”

Further, the members said that as besan was tax free, the bills of pulses, which were purchased from the outside states, come in flour mills’ names and later they show in papers that they had converted pulses into besan and hence are not liable to pay any tax.

Aggarwal said, “This way excise department is losing tax worth crores. As the CM heads the excise department, he should show some urgency in fixing the problem. Already a year has been lost.”

Source : Ludhiana Newsline - Ludhiana, India, dated 14/11/2008

 

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