The Federation of All Orissa Traders’ Association (FAOTA) has sought simplification of the return form of the Value Added Tax (VAT) in the interests of about 10 lakh traders in the state.
Addressing the media here, BK Mohanty, general secretary, FAOTA, said, “The finance department of the Orissa government has revised the VAT return form in a notification issued on February 25 this year. The new VAT return form contains 17 pages instead of the 6 pages of the existing form and the new form has become more lengthy, complicated and cumbersome.”
“The state government is needlessly harassing the trading community by revising the VAT return form. With the VAT return form getting complicated, there is every possibility of the traders committing mistakes in furnishing information, making them liable to be penalized for their mistakes”, he added.
Mohanty pointed out that it may not be possible for most of the traders to file VAT returns in the revised forms and deposit their taxes as mentioned in the notification of the state finance department.
He said that the state government posted a VAT collection of about Rs 5,000 crore in 2007-08 and targeted at a collection of Rs 6,000 crore by the end of 2008-09, adding “The state government’ s VAT collection would be hit if it does not go for simplification of the VAT return form.”
FAOTA has requested the state government to simplify the return form as promised in the VAT advisory committee to make it more simple and intelligible for any lay trader to fill the form without any assistance.
The association has decided to convene its meeting on March 22 if the state government does not heed its suggestion. FAOTA is prepared to go for a state-wide bandh in the event of non-fulfillment of its demand and the meeting on March 22 would decide its future course of action.
FAOTA is an umbrella body of 132 trading associations in Orissa comprising a membership of about 10 lakh traders.