Demand to reduce VAT on optical industry

Ludhiana, September 6, 2012: In lieu of the 8% VAT being levied by the Punjab Government on Optical industry, a meeting was called in by the Optical Association Punjab to the discuss the issue with its members and the meeting was chaired by the President of the association, Dr. Subhash Bansal.

Members of the optical industry including shopkeepers and retail traders participated in huge numbers from Ludhiana, Amritsar, Jalandhar, Phagwara, Kapurthala, Bathinda, Sangrur, Moga, Hoshiarpur, Ferozpur and other parts from all over Punjab.

During the meeting, members of the association submitted a memorandum to the Vice Chairman of Punjab Small Traders Board; D.P. Chandan, requesting the Punjab Government to roll back the immense burden that has been put on the industry by introducing 8% VAT. When VAT was introduced to replace the sales tax, Punjab government assured the industry body and members that the amount of VAT introduced will be unanimous amongst all northern states.

Instead, the Punjab government introduced an extra 3% VAT on the industry in Punjab, even though neighbouring states like Himachal Pradesh, Haryana, Jammu and Kashmir, Chandigarh and Delhi still has only 5% VAT.

During the meeting, Chandan assured the members of association that will soon take up the issue with Chief Minister of Punjab, Prakash Singh Badal and make him aware of the problems being faced by the industry.

On the occasion, President of the association Dr. Subhash Bansal said that due to Punjab government’s decision to implement 8% VAT, not only the industry but the public in general is also suffering due to higher costs. He also said that Punjab government should understand that optical business line is like a medical line, where a person with weak eyesight has a necessity of wearing spectacles just like a sick person needs to take the medicine. These days with environmental pollution, people want to protect their eyes by wearing spectacles. Even in children it has been found that with burden of studies coupled with high computer usage and increased TV viewership, the eyesight is getting weak at an early life stage leaving no option but to use spectacles. This is the reason I would request the Punjab government to reconsider its decision on higher VAT.

Also addressing the meeting, association’s Chairman Surinder Pal Singh said that due to higher VAT levied by the Punjab government on the industry, it is becoming increasing difficult for them to survive and provide for their family in today’s high inflation environment.

In the end, association’s Press secretary Girish Sachdeva said that Punjab government should understand that unlike some other industries this is not a luxury business. Moreover, due to no manufacturing facilities of spectacles in the state, the traders and retailers have to import the goods from other states which already makes the business environment tough. Members and the industry body present at the meeting again requests the Punjab government to reconsider their decision of levying higher VAT than other states, which makes it uncompetitive and difficult for the industry to thrive.