Tax avoidance by truckers as rampant in Vat: Survey
Value added tax (Vat) regime has not proved superior to sales tax system in tackling tax avoidance so far as inter-state and intra-state movement of goods are concerned, says a survey.
“This (inability of Vat system to control tax avoidance) has emboldened the tax avoiding section of traders and goods booking transporters to go for movement of retail cargo on inter-state and intrastate routes with impunity as prevailed during the sales tax regime,” a study by Indian Foundation of Transport Research and Training (IFTRT) has said.
The survey said during March 2005, an element of uncertainty and confusion in the markets resulted in 40 per cent drop in retail parcel booking on intrastate and interstate routes in most parts of the country.
Consequently, the retail freight rates and truck freightage took a nosedive ranging from 7 to 8 per cent.
More: zeenews.com
4/18/2005
UP will not switch to VAT in near future
UP will not switch to VAT in near future
Uttar Pradesh has ruled out switching over to VAT regime in “immediate future” despite the empowered committee’s efforts to persuade it to opt for the new tax system.
“We will not introduce VAT until our traders are willing to accept it. We are talking to traders and it will take some time for us to persuade them ,” Uttar Pradesh agriculture minister Ashok Bajpai, representing state government in the empowered committee’s meeting on Saturday, said.
However, Bajpai did not specify any timeframe by when the state will be able to persuade its traders to switch over to the new tax regime. “If traders agree, we don’t have any problem in implementing the new tax system,” he said.