VAT : Orissa traders threaten to stop purchase
VAT : Orissa traders threaten to stop purchase
The traders of Orissa have threatened to stop purchase and import of goods from wholesaler as a gesture of opposition of introduction of VAT in Orissa
‘’The traders are still in the dark about the provisions of the new tax and there is no move by the government to educate them,'’ B.K.Mohanty, general secretary of the Federation of All Orissa Traders’ Associations (Faota), said.
The traders were irked because the state government had decreased the turnover limit and increased the turnover tax. The government had ‘arbitrarily’ lowered the annual turnover limit to Rupees two lakh from the Rs. 10 lakh that was recommended by the empowered committee.
Though the turnover tax was to be imposed at the rate of 0.25 per cent on a turnover limit of Rs. 50 lakh, the limit had been decreased to Rs. 10 lakh and the turnover tax rate raised to one per cent in Orissa, he said.
This resulted in small traders and shop keepers, who were not educated enough to maintain the records as required under the new tax regime, falling into the VAT net, he said.
The Faota had sent memoranda to Chief Minister Naveen Patnaik and Finance Minister Prafulla Chandra Ghadai in this regard, Mohanty said.