CICU asks Punjab Government to rollback VAT hike on steel industry

Ludhiana, January 31, 2015: Avtar Singh, President and Upkar Singh Ahuja, General Secretary, Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana have condemned the increase of 1.10 percent value added tax (VAT) on steel industry which is already facing hard times. This VAT hike has sounded death knell for all engineering, auto, bicycle and other steel consuming industries. Due to already delay in VAT reimbursement, funds of all steel & allied industrial units will further remain blocked which will add to financial woes and hit them adversely. This move is bound to further effect the already depleted financial position of entire steel related industries.

However they have appreciated Punjab Government for abolishing e-Trip system for iron and steel, yarn, vegetable and mustard oil, cotton and paper board industry for about 80 percent of total dealers in the State. They have also welcomed the gesture of Punjab Government for VAT exemption to 1.86 lakh traders with annual turnover of up to Rs. 1.00 crore.

Both of them have strongly appealed and urged upon Sukhbir Singh Badal, Deputy Chief Minister, Punjab to roll back VAT hike on steel from 2.75 percent to 3.85 percent immediately for survival of steel industry in this already prevailing adverse scenario. They have also requested Punjab Government to abolish VAT on bicycle and bicycle parts, sewing machine and sewing machine parts.