FAM opposed to VAT on essential commodities

Mumbai, Feb 26 (UNI) The Federation of Associations of Maharashtra (FAM) has flayed the proposed imposition of value added tax (VAT) on essential commodities while cautioning that such a move would aggravate inflation.

FAM president Mohan Gurnani was scheduled to meet Chief Minister Vilasrao Deshmukh and register FAM's opposition to the VAT on essential commodities.

''Mr Gurnani will point out to the Chief Minister that imposition of VAT on essential commodities will lead to 15 to 20 per cent increase in their prices,'' FAM office-bearer Chandrakant Sanghvi informed.

VAT is an idea imported from Western countries. However, in these countries too, there is no VAT on essential commodities, another office-bearer Mr Maru observed.

''When VAT was first mooted, the government had assured that post-VAT, all other taxes like the Central Sales Tax would be abolished. But the government has not kept its word,'' FAM Secretary Mohammad Ali Patel ruled.

UNI