Traders want changes in VAT bill

The Gujarat Vyapari Hithrakshak Samiti (state traders body) has stated that the association will intensify its agitation to effect changes in the existing Gujarat Value Added Tax (Amendment) Bill, 2005.

Indications are that the state might implement the Value Added Tax (VAT) system from July.

Climbing down from the earlier stance that VAT should not be implemented at all, Vyapari Samiti vice-president Jayendra Tanna said on Sunday, that while VAT is bound to come into force some day in state, the trading community cannot accept VAT in its present form.

"The penalty clauses are too stringent and Samiti has sent several letters to the state government, seeking a meeting. But none of our requests have been met so far," Tanna said.

Although state finance minister Vajubhai Vala did not attend the high powered committee on VAT of state finance ministers held on Saturday, the finance department has already initiated computerisation to meet the VAT requirements.

In fact, the department has already asked officials concerned to be ready for implementation of VAT from July.

Manufacturing community had put pressure on the government to implement VAT. Many states, including neighbouring Maharashtra, have already implemented VAT.

Commenting on the price rise of goods by around 15 per cent in states where VAT has been implemented, Tana said that apart from the additional burden inflicted on consumers, there is also confusion about VAT.

"In a state such as Gujarat, if the government does not talk with traders' organisations and sort out pending issues, people will face difficulties here," he said.