Source: The Sangai Express
Imphal, March 18:
The Associated Manipur Chamber of Commerce (AMCC) has prevailed pon the State Government to take into account circumstantial and locational complexities of Manipur rather than hastily implement.
Value Added Tax.
In a representation addressed to the Chief Minister the AMCC highlighting the sentiment of the business community explained of Manipur being an end-consumer State with practically no exports other than handloom and handicrafts and meager horticultural product introduction of VAT will only aggravate the economic situation.
The items which were hitherto exempted from sales tax would be brought under the tax-net under VAT, said the representation while highlighting that such taxation will only add to the woes of the traders who are already facing stiff competition from Myanmar origin goods which have no tax implication.
Referring to the March 15 statement of Union Finance Minister P Chidambaram at Parliament regarding some States including many in the North East region delaying implementation of VAT the Chief Minister was cautioned of VAT regime's futility due to possibility of goods meant for non-VAT States finding their way into Manipur.
Small scale handloom and handicrafts considered to the largest provider of wages to many families in the State would certainly feel the pinch once VAT comes into force as raw materials brought into the State cannot remain aloof from levy of VAT, said the statement.
Not only will food-grains and other indispensable items come within the ambit of VAT, the traders themselves had to invest more in accounting gadgets like computer to maintain records that will prove to be unbearable burden.