The Hindu Business Line : VAT panel draws plan to tackle price rise

THE Empowered Committee of State Finance Ministers on Value-Added Tax has chalked out a strategy to tackle the price rise in certain commodities ever since the implementation of VAT from April 1.

"We have noted that for certain commodities there has been a price rise, which is not justified in a VAT system. We have also received specific complaints against big manufacturers who have not passed benefits of VAT reduction," Dr Asim Dasgupta told reporters after a meeting of the empowered committee here on Saturday. He said the States concerned would come up with advertisements to explain the earlier rates, the new VAT rates and the prices that should be charged.

Dr Dasgupta said the representatives of the manufacturers concerned would be required to talk to VAT officials to explain their point of view. "Where prices are not falling, we will ensure that prices come down to the level possible," he said.As regards the eight States that have not implemented VAT so far, Dr Dasgupta said the Finance Ministers of the 21 States (that have implemented VAT) would visit these States and try to convince the Chief Ministers and Finance Ministers of the non-VAT States to implement the system.

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