Drive aims to endear Vat among traders

A recent drive aiming to show traders the benefits of Value Added Tax saw a large number of the trading community voluntarily come forward to register for evaluation under VAT yet the percentage of registered traders is still very low.

Of approximately 1,60,000 traders registered under the jurisdiction of the Kolkata Sales Tax Commissioner, only around 30,000 have signed up for evaluation under VAT, according to an assistant commissioner of sales tax. However, the one-week drive by the Confederation of West Bengal Trade Associations and the Commercial Tax Directorate, which ended today, appears to have begun to ease misconceptions among the trader community.

Mr Feroz Ali, president of the confederation, said there is a general apprehension among the traders regarding VAT. “They think it is a more cumbersome process than it is and that accounting will be complicated. This apart they also are afraid of being under a constant scanner of tax officials,” he said. “We have come forward to break the mental barrier that stops them from coming under the legal tax structures,” an assistant tax commissioner said.

It is hoped numbers will increase in the future, he added. “We traders have been blamed for being afraid of being brought under a regime which will make black marketing difficult. We wanted to dispel those feelings,” Mr Ali said.

The campaign was organised on Ezra Street and NS Road. “Over 1,000 traders registered and even small traders are coming forward.

Until now registration has been low because of the fear of complicated procedures followed in government departments,” Mr Ali said.