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KVIC seeks exemption from VAT

By Our Special Correspondent

NEW DELHI MARCH 12. The Khadi and Village Industries Commission has sought exemption for its products from the value added tax (VAT) and has already approached the Finance Ministry empowered committee to consider the issue.

The KVIC Chairman, Mahesh Sharma, said the commission would approach all State governments as well as the Centre on the exemption on VAT that is proposed to be levied from next month.

Addressing a press conference, he said "we have taken a very strong position in this regard (vat exemption).''

The Commission has also asked various States to provide exemption to the khadi and village industries.

A positive response to the demand had been received from various States like Uttaranchal, Kerala, Rajasthan and Jharkhand, he said.

Mr. Sharma maintained it was not logical to impose tax on a sector that had engaged people from weaker, rural and even tribal sections of the society. Regarding performance of the sector, he said the net turnover of KVIC was expected to cross Rs. 10,000 crores for this fiscal as against Rs. 9,000 crores last year.

On declining employment in the sector, he said though the traditional markets of oil workers, potters and weavers were facing a threat, the sector was generating over 1,000 new jobs every day. Employment generated in this sector was 62.64 lakhs during the last fiscal, he said.

As for the forthcoming convention, to be inaugurated by the Prime Minister Atal Behari Vajpayee on March 14, he said over 1,100 participants were expected to attend the three-day event.

The convention would discuss issues on khadi programme, rural employment, role of science and technology and marketing initiative and artisans upliftment.

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