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“We
have a forecast of eight million job losses across the
country this fiscal. In Bengal, the problem is compounded
as these sectors have to cope with the non-refund of VAT,
” said Ganesh Kumar Gupta, national president of the
Federation of Indian Export Organisations.
According
to Gupta, a labour-intensive unit such as handicrafts, has
experienced negative growth of 60 per cent in the first
nine months of this fiscal in the country. In Bengal, the
sector has a VAT outstanding of Rs 80 crore for 2006-07
and 2007-08.
States
such as Bengal and Orissa have not refunded any of the VAT
amount since its implementation in 2005.
However,
in states such as Tamil Nadu, Andhra Pradesh and
Maharashtra, the VAT amount is refunded within 90 days of
the claim.
The
leather industry, which employs around five lakh people,
have outstanding VAT refunds worth Rs 80 crore for 2006-07
and 2007-08.
“The
non refund of VAT has made such a dent in the working
capital that many micro, small and medium units have been
forced to close shop or move to other states,” said
Gupta.
Source
: Calcutta Telegraph - Calcutta, India, dated 18/02/2008
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