VAT leaves traders confused

<div class="section0"><div class="Normal"><span style="" font-size:="">MUMBAI: Is VAT to be charged on octroi as well? Will the central sales tax really go after two years? How many forms will we have to stock up? These were some of the points raised by thousands of traders and retailers who turned up at Azad Maidan onWednesday to protest against value added tax (VAT).VAT was introduced in the state from April 1 in lieu of all other taxes such as sales and excise. About 250 trade associations threatened further action if their issues were not resolved by April 14.</span><br /><br /><span style="" font-size:="">A key complaint of the traders was that the government has not bothered to educate them before imposing this new tax. "It has been introduced without a preamble," said Deepak Shah of the Mumbai Gur Merchants’ Association. Traders were disgruntled that they still don’t have the ready reckoner for goods to be taxed and not taxed ("What’s the point of putting this classification on the website?" asked one of them). Secretary of the Mumbai Mahanagar Vyapari Seva Parishad,Rajesh Thakkar, said, "The government should have given us at least a month to prepare for the VAT regime."</span><br /><br /><span style="" font-size:="">The traders had a string of demands: withdraw the central sales tax ("this is double taxation"); don’t impose steep levies on commodities like spices, tea, and jaggery; clarify issues concerning stocks carried forward and resale stocks; remove the penal clauses from the VAT act. Traders are also wary about the fact that Maharashtra is surrounded by non-VAT states like Gujarat and Rajasthan. "Trade will migrate to low tax regions. This will kill our business," said Arun Bhinde, president of the Navi Mumbai Commodity Brokers Welfare Association.</span></div> </div>