Date:14/01/2006 URL: http://www.thehindu.com/2006/01/14/stories/2006011400451700.htm

Business

State records tax loss after VAT implementation

Staff Reporter

Steps mooted to bring more tax-payers under VAT ambit

KOCHI: The tax revenue has been reduced by 3 per cent in the State after the introduction of Value Added Tax (VAT), said Paul Antony, Commissioner of Commercial Taxes, Government of Kerala. The tax revenue had gone up in all the VAT implementing States except Kerala and Bihar.

He said this while addressing meetings convened by Kerala Chamber of Commerce and Industry, Indian Chamber of Commerce & Industry and Kerala State Small Industries Association here on Friday.

Registration camps

He said though the revenue loss would be compensated by the Union Government in the first year of implementation, the State would have to bear the loss later on. He suggested that registration camps be organised to increase the number of tax-payers.

At the KSSIA meeting, Mr. Antony released a book on VAT. Small industrialists raised a series of grievances regarding the VAT implementation.

At the meeting of the Kerala Chamber of Commerce and Industry, complaints that came up included undue delay in refunding deposit and absence of uniformity in VAT implementation in various States.

Mindset problem

A memorandum on various issues pertaining to the implementation of VAT was submitted to the Commissioner.

At the Indian Chamber of Commerce & Industry, Mr.Antony said the VAT implementation was going through a transition phase.

There have been issues such as lack of clarity, ambiguity and mindset.

The Department was aware of the problems and was trying to give intensive training to its officials so that many problems arising out of VAT implementation could be solved.

He said the copies of circulars and notifications could be sent to the concerned trade bodies and other associations so as to ensure transparency.

Mr. Antony said officials of the Commissionerate could be deputed to registration camps so that immediate registration could be done.

S.Anil Kumar, VAT consultant, V.K.Beena Kumari, Deputy Commissioner (Mattancherry), M. Rehmuthunnisa Begum, Deputy Commissioner (Ernakulam) and Julius Smith, Deputy Commissioner (Intelligence) were present at the meetings.