FinMin told to monitor price of goods under Vat
The empowered committee of the state finance ministers has urged the Union finance ministry and other other Central ministries to monitor the price level of Vat commodities which should have come down after the implementation of the new tax regime.
Although the Consumer Price Index (CPI) slipped from 5% in April to 3.7% in May and further to 3.3% in June, the committee is concerned about rising prices of certain Vat commodities, said empowered committee convenor and West Bengal finance minister Asim Dasgupta. He was talking to media after a meeting of the committee here on Wednesday.
“Index is an average concept. Prices of some commodities have risen. We are particularly concerned about those commodities, where prices have gone up despite reduction in Vat rates,” he said.
The committee, he said, wanted finance ministry officials and other ministries concerned to hold regular meetings to monitor prices of Vat commodities.
On passing the benefits by manufacturers to the consumers, he said, “It is not happening countrywide.” To a query whether punitive action would be taken against those not factoring in Vat in the maximum retail price (MRP), Mr Dasgupta said the panel would recommend such action only after discussions with the finance ministry. “Persuasive efforts do also bear fruits”, he added.
Besides prices, another issue affecting Vat was non-issuance of cash memos and invoices, he said, adding trade associations and chambers have assured the Vat panel that they would be cooperating with it on this matter.
Mr Dasgupta also said revenues of states have gone up after the Vat implementation.
Source: financialexpress.com