Ministries’ help sought to monitor VAT impact on commodities
The empowered committee of state finance ministers today decided to seek the assistance of finance ministry and other central ministries to monitor changes in prices of commodities that are covered by value-added tax (VAT). It may also seek action against companies that have failed to pass on benefits of lower rates to consumers.
Empowered committee chairman Asim Dasgupta told reporters, here today, that action would be recommended after detailed discussion with the finance ministry and industry chambers. On uniform rate of tax for bullion, the panel would meet with chief ministers of Rajasthan and Gujarat in the next few weeks to persuade them to raise the levy from 0.25% to national level of 1%.
Dasgupta said the committee has received complaints that many companies have not made changes to MRP of products which now attract lower duties under sales tax. Consumers across the country have been complaining that prices of many commodities have risen post implementation of VAT regime even where there was no change in rates.