The
Federation of Karnataka Chambers of Commerce and
Industry has urged Deputy Chief Minister B.S.
Yediyurappa to continue with the Value-Added Tax (VAT)
exemption provided for foodgrains, particularly rice and
wheat.
Mr.
Yediyurappa, who also holds the Finance portfolio, has
commenced pre-budget consultations with trade and
commerce bodies for drafting the second budget.
According
to the Federation of Karnataka Chambers of Commerce and
Industry (FKCCI) president R.C. Purohit, the price of
pulses, wheat and rice has already increased, and if the
commodities are brought under the VAT bracket, the price
of pulses will increase by another Rs. 5 a kg and that
of wheat by Re. 1. B.T. Manohar, chairman of FKCCI's
taxation committee, said the Government could not change
the present rate since VAT came under the purview of an
Empowered Committee of Finance Ministers headed by West
Bengal Finance Minister Asim Dasgupta.
Source : Hindu - Chennai,
India dated 24/01/2007
