|
CII-Andhra Pradesh concerned over increase in VAT
The Confederation of Indian Industries Andhra Pradesh (CII-AP)
has expressed concern over the proposed increase in
value added tax (VAT) to 5 per cent from the earlier 4
per cent. According to the industry body, as 3,000
products come under the Schedule-IV list, this will have
a direct impact on the consumers.
The order has come at a time when the country has seen
poor industrial growth of 3.3 per cent in July this
year, compared with 9.9 per cent during the same month
last year, as indicated by the recent Index of
Industrial Production (IIP) data, it said.
|
|
|
Suchitra Ella, vice-chairperson, CII Andhra Pradesh & joint
managing director of Bharat Biotech International, said, “The primary reason
given for the increase is that the share of state government in the central
taxes has fallen short by about Rs 500 crore.”
“There is no appropriate justification for levying taxes to raise the revenue
beyond the said shortfall. The state government should have resorted to better
expenditure management practice rather increasing taxes,” it said.
The common man is already reeling under the impact of high inflation,” she
stated in a release here on Wednesday.
Though many states have increased the VAT according to Centre’s guideline, the
CII Andhra Pradesh said that the timing of such a measure was inappropriate.
Source:
Hindu Business Line, India, dated
15/09/2011 |
