Fear shuts Manipur tax wing - Militants demand money
The taxation wing of the Manipur government has ceased to function after all the employees barring the head of the department took leave en masse following alleged threats from several militant groups.
The departmental office located at the directorate complex near the headquarters of a Manipur Rifles battalion here has been locked since yesterday as all the employees took earned leave till August 30.
This is for the first time in Manipur that an entire office complex was closed down following threats from militants.
Reports said several militant groups have demanded huge sums of money from the employees of the department and some of the groups set August 31 as the deadline for the payment. The groups allegedly warned the employees with dire consequences if their demands were not met.
When this correspondent visited the complex, the main gate of the office was found locked and no employee could be seen. A notice pasted on the wall near the main gate said the employees were on earned leave.
“We have no alternative to taking mass leave in view of the threat and strong pressure mounted by several militant groups. The total sum demanded by the groups is about Rs 70 lakh and we have no money to pay,” a senior official of the department said.
Commissioner of the department, R.K. Dinesh, had earlier notified that all the registered and unregistered dealers and shops should get themselves registered under the new value added tax (VAT) system on or before September 1. The notification warned that an amount not less than Rs 5,000 and not exceeding Rs 10,000 would be collected as fine for each defaulting month from each dealer if they failed to get themselves registered. Manipur introduced the new tax regime with effect from June 1.
But as the office has been closed without any formal notification, many who turned up for registration of their shops and also to clear the tax under the new system had to go back.
“I came to pay sales tax under the new VAT regime. We had no information of the closure of the office. Our time has been wasted. What is more important is that since the office will remain closed till August 30, we have only two days to pay the tax and registration fee. Will they impose fine on those of us who fail to clear the tax during the two days?” L. Sanajaoba, a drug stockist, asked.
The department has about 100 employees and some of them said they could not sit in the office and work due to the militant threat. “There is a fear psychosis prevailing among the officials. Earlier, three officials were kidnapped by militants. On the one hand we are facing threats from militant groups while on the other, the government is pressuring us to go for an enhanced tax collection drive. We are sandwiched between the two,” another official said.
Source: telegraphindia.com
5/5/2005
Dasgupta pep talk to make VAT a success
Allaying traders’ apprehension over value-added tax (VAT), Bengal finance minister Asim Dasgupta, who is also the chairman of the empowered committee of finance ministers on VAT, today denied allegations that the new tax rate has been imposed on the pressures of IMF or World Bank.
Addressing a seminar on VAT here today, Dasgupta said the traders would not need to maintain accounts through computers. The ledger of accounts the traders maintain would be enough, he added.
The seminar was organised by the commercial tax department of the Orissa government to raise awareness among traders and clarify the misconceptions surrounding VAT.
Dasgupta said VAT is not an inflexible tax system. “Let the traders give their suggestions. We are to change the existing rules and conditions on VAT accordingly,” he said and added that state governments have been given ample power to provide relaxation to the trading community.
He also said that no action would be taken against traders, who fail to comply with the new tax regime, in the next six months. Dasgupta asserted that the uniform tax rate would benefit both the traders and the government.
Inaugurating the seminar, chief minister Naveen Patnaik said some states have made perceptible deviations from the convergence point reached earlier by the empowered committee.
“VAT would be successful in a federal country like India if there is mutual trust and reciprocity of actions. Unless all the states adhere to the same principle and policy relating to VAT, there would be revival of competitive populism among the states,” he said referring to neighbouring states such as Jharkhand and Chhatisgarh, which are yet to implement VAT.
More: telegraphindia.com
VAT block in water pipes
Confusion over value-added tax (VAT) has led to a severe shortage of pipes at the civic water supply department.
Depletion of the stock of poly-pipes at the central store of the Calcutta Municipal Corporation (CMC) is denying residents of the southern and eastern fringes of the city the benefits of the booster pumping stations in Kasba, Ranikuthi, Bansdroni, Garfa, Kalighat and Bagmari.
The pipes are required to supply filtered water to households from the booster stations.
Around two months ago, the CMC had placed a Rs 1.5-crore order with an Orissa-based company for supply of poly-pipes. The delivery was delayed by the strike over VAT.
The company had said the pipes would be delivered on April 1, but the consignment is yet to reach the civic store.
The CMC water supply department needs 24 km of pipes of various diameters. A fund of Rs 1.5 crore had been allocated for the purpose.
Mayor Subrata Mukherjee said the order for the pipes had been placed months ago and it was the responsibility of the mayoral council member in charge of water supply to pursue it. The member, Sovan Chatterjee, said the mayor should allow spot purchase of the pipes.
More: telegraphindia.com