Berhampur (Orissa), Feb 20 (PTI) Increase of valueadded tax (VAT) in consumer durable items as proposed in theOrissa budget would adversely affect revenue augmentationmeasure of the government, a traders'' body said here today.
Customers would purchase goods like refrigerators,washing machines, air-conditioners and four-wheelers atcheaper rates from neighbouring states like Andhra Pradesh,West Bengal, Chhatisgarh, Ganjam District Chamber of Commerce(GDCC) said.
"Compared to Orissa, VAT would be less in these statesfrom April 1. No entry tax would be collected in thesestates while Orissa would levy two per cent for the same,"said GDCC president Rabindra Nath.
"With one per cent increase in the VAT as proposed inthe state budget, the tax difference with the neighbouringstates on the consumer durable goods will be widened to aboutthree per cent. The cost of the items will be higher thanother states".
He urged the government to reconsider the proposal toraise VAT and maintain tax parity with neighbouring states.