Kerala - Cement dealers want VAT included in MRP

The Kerala Cement Dealers Association has urged the government to collect VAT (value-added tax) on cement directly from the manufacturers by including it in the MRP (maximum retail price) so that the dealers could save themselves from ‘harassment’ by tax officials.

Association functionaries told a news conference here on Friday that the Commercial Taxes officials were unnecessarily harassing the dealers in the name of VAT.

The current taxation practice amounted to double taxation. If the current practice continued, they warned, the dealers would stop the sale of cement in protest.

The association’s State convention is scheduled to be held in Thrissur on February 24.

The association leaders said that by including VAT the government could collect more tax and the dealers would be spared of the burden.

However, they alleged, the tax officials were opposing this as it would plug channels of bribes for them.

Source : Hindu - Chennai, India,  dated 17/02/2008