Kanara Chamber of Commerce and
Industry (KCCI) has welcomed a move by the Union finance ministry to implement
the Goods and Services Tax Act with effect from April 1, 2010. A letter from G G
Mohandas Prabhu, vice-president, KCCI, addressed to the Union finance minister
Pranab Mukherjee and released to the media here, stated that this was a major
step in rationalising the tax structure.
KCCI
pointed that while taxing the goods (commodities) such
as food grains, pulses, the traders will have to pay the
cess or market fee collected by the agricultural
marketing department at the rate of 1-1.5% in addition
to the existing local taxes (VAT). Prabhu suggested that
when the goods and services tax is made operational such
powers given to the various departments of the state
governments be withdrawn.
A commodity be made liable to a single tax, namely goods
and services tax, he said adding that the rationale
behind this suggestion is that it involves duplication
of work for trade and industry and scope for further
evasion of taxes in connivance with departments of the
state government.
If the state governments feel that the revenue is lost
by doing away with such levies, cess or market fees at
the rate applicable for commodity should be
proportionately increased and from the amount of tax
collected through goods and services tax, the state
governments may defray the amount to their departments
to carry on their activities. Prabhu appealed to the FM
to consider this suggestion positively.
