The Hindu Business Line : Kerala Chamber to oppose penal provisions in VAT regime

THE Kerala Chamber of Commerce and Industry will strongly oppose the stringent penal provisions and other adverse clauses in the proposed law on Value Added Tax, Mr C.P. Jain, President of the chamber, has said.

Reiterating that the chamber is not against the implementation of VAT, he said that the Bill has many provisions, which would adversely affect the business community.

The State Government has already passed the Kerala Value Added Sales Tax Bill in 2003. But it was passed without much discussion in the Assembly or with the representatives of the business community, he added.

Addressing a press conference here on Monday, Mr Jain said that the Bill has many adverse provisions and could also lead to harassment and corruption.

The assurance given by the authorities to incorporate suggestions in the implementation of the law and amend certain provisions in the Kerala VAT law has not been fulfilled so far, he said.

The accounting under VAT would be different from the existing tax system and the chamber has arranged a class on account under VAT regime on February 9 for the benefit of traders.

The chamber had also decided to conduct a series of conferences to formulate a plan on infrastructure for another 25 years with the active participation of renowned experts.

With the implementation of various projects such as LNG, Vallarpadam terminal etc, there would be serious problem to faced by Kochi city with regard to inadequate roads and bridges, shortage of water and power.

The Chamber was of the view that along with providing infrastructure within the city limits, the authorities should also take steps to develop satellite townships to around the city, he said.

Referring to the establishment of a print village by the Government, Mr Jain suggested that the Government should announce Printing Park in the CSEZ as the zone is ideal place for locating a printing park.

The Union Government has already declared an area of 450 acres in Vypeen Vallarpadam belt as SEZ. With all tax incentives, special schemes and concessions, this would become most attractive location for new industrial ventures, he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page