Businessmen support implementation of VAT in Rajasthan

Jaipur, Feb 23 (UNI) Industry and trade representatives in Rajasthan seem to have reached a consensus on the implementation of Value-Added Tax (VAT) in the state.

Members of CII, FICCI, Association of Tax Consultants and other trade organisations are supporting the implementation of tax and have communicated it to the Chief Minister Vasundhara Raje Scindia, sources said.

However, most of these organisations were against the implementation of tax last year.

The CII in its pre-budget memorandum to the state government has recommended that all other taxes like Entry tax, Purchase Tax, Mandi tax, Luxury tax be amalgamated with VAT, which should be introduced in the state by April,2006.

Urging for urban reforms, CII's Rajasthan chief Mr Makrand Nirmal said the current stamp duty structure in Rajasthan is resulting in a loss of significant revenues for the state exchequer and should be brought down to four per cent.

He also suggested reducing the stamp duty by 50 per cent in case of adding new partners in the industry and making it free for women entrepreneurs.

But chief of Rajasthan Khadya Vyapar Sangh, Babulal Gupta, said businessmen in the food industry would continue their protests against implementation of VAT.

UNI RRT SC KN1723