Jaipur, Feb 24 (UNI) The Confederation of Indian Industry (CII) has urged the Rajasthan government to implement Value Added Tax in the state from April 1 -- a BJP ruled state which has so far not implemented VAT.
The CII, in its pre-budget memorandum submitted to the state government, has laid a roadmap for the development of the state and has recommended the introduction of VAT on April 1, 2006, to plug tax leakages and boost state revenues.
CII while saying that VAT legislation must be re-drafted to avoid problems simplify proceedings, certifications and legal clauses, suggested that all other taxes like entry tax, purchase tax, mandi tax, luxury tax etc. must be amalgamated with VAT.
Entry Tax on raw materials of electronic and all other goods should be abolished immediately, the Chamber felt.
The document conveys that the current stamp duty structure in Rajasthan is resulting in the loss of significant revenues for the state exchequer and should be brought down to 4 per cent.
CII also suggested reduction of stamp duty by 50 per cent in case of adding new partners in the industry and must be made free for women entrepreneurs.
The Chamber recommended that the new industrial policy must come at the earliest for the state and to facilitate a conducive environment for industrial growth, the memorandum recommends that a single window system should be followed in true spirit and be made effective.
According to the industrial survey, there are 15-20 procedures and forms through which a new entrepreneur has to pass for setting up an industry.
These should be cleared at one location and be time-bound only.
An evaluation system be generated as to what progress has been achieved since its inception.
Tourism is one of the biggest revenue earners for the state exchequer. CII recommended that to facilitate the growth of tourism, it should be accorded a full fledged industry status at the earliest. Land should be provided on lease at concessional rates as done in the case of industry.
To further increase the landing of international flights in Jaipur, it is suggested that Air Turbine Fuel (ATF) surcharge be abolished. The report has given suggestions on the need for reforms in the power sector. Reducing transmission and distribution losses should be a priority area. A 1 per cent reduction in T&D losses results in Rs 70 crore of revenue for the state.
UNI XC RA RR KN1907