City traders oppose new VAT slab of 6 per cent

New Delhi, Dec 6 (UNI) Trading community in the capital has opposed the move to introduce a new VAT slab of six per cent by the Empowered Committee of state finance ministers, saying it is against the agreed system of limited slabs under the new tax regime.

Instead of discharing its resposibility of reducing Central sales Tax at the rate of two per cent per year, the Empowered Committee was contemplating a new tax slab that would make goods more costly, besides increasing paper work, Confederation of All India Traders said in a statement today.

Raising the tax slab from four to six per cent was just another way the Committee was trying to put extra burden on the traders, it added.

CAIT General Secretary Praveen Khandelwal had written to Empowered Committee Chairman Asim Das Gupta expressing traders' reservation and resentment on the issue.

The traders' body would also raise the matter in the next meeting of the Empowered Committee, besides taking it up with Finance Ministers of all the states.

UNI IP SI DB1852