Importers demand tax concessions

STANLY PINTO / TNN / Jun 23, 2004, 20:17 IST

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MANGALORE: The timber yard at the New Mangalore Port is wearing a deserted look from the past fortnight, following the timber merchants strike demanding the government to give them certain concessions.

<div class="section1"><div class="Normal">MANGALORE: The timber yard at the New Mangalore Port is wearing a deserted look from the past fortnight, following the timber merchants strike demanding the government to give them certain concessions. The Karnataka Timber Importers Association vice president U K Monu said that there were various forms of tax levied on imported timber, which makes buying timber in Mangalore not only costly as compared to other states, but also may reduce the domestic demand. First of all, he has called for he reduction of rate of tax on timber.Presently, Monu said, the rate of tax on timber at first point is 13 per cent and at subsequent sales it is 1.5 per cent (multi point) which is very high --while comparing it with neighbouring states. He said further there is one per cent non collectible additional tax, surcharge of 10 and 15 per cent cess. All put together tax on timber as such comes to as high as 16 per cent. He said in the states of Maharastra, Tamil Nadu, Andhra Pradesh, Kerala, Gujarat the taxes were not more than 10 per cent, all put together. He requested the government to reduce the rate of tax on timber to eight per cent and abolish 1.5 per cent multi- point tax and other surcharges and cess to bring at par with rates prevailing in other neighbouring states. Association secretary Amritlal Patel said though originally not included in the previous state budget, a non collectible Additional Tax of one per cent was brought in to force by Karanataka sales tax (amendment) ordinance 2003. He said this must now be withdrawn in forthcoming Budget. He said this was nothing but a turnover tax in the form additional Tax. Patel observed that presently for transportation of timber in the state forest permit (Form no. 28 and 29) is required. Hitherto, only Rs 15 was charged for such permit, but recently the fees has been increased to Rs 200 per cubic metre through a notification from May 2004, making the cost of the permit Rs 4,000 per truck. He wanted this to be abolished. Association president Shehzad Darvesh said the state by a notification in 1978 Timber has been notified as agricultural produce the APMC has been collecting one per cent cess on timber. He said imported timber can never be considered as an agro-product and also as it was grown on Indian soil. He also requested the government to declare NMP and its surrounding area as free timber saw-mill yard. Sales Tax exemption schemes must be declared to attract importers of timber at Mangalore port. He said presently such schemes have been already declared by the respective state governments at Kandala and Tuticorin. He also said at present 95 per cent of the total consumption of Timber is met by way of imports. This is helping the country and states to conserve forests. </div> </div>

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