FICO expects 0% VAT on Bicycle Industry

Ludhiana, March 5, 2015: Federation of Industrial & Commercial Organisations (FICO) have welcomed the decision to exempt Iron and Steel, Yarn, Sarson (Mustard), Cotton, Vegetable Oils, Plywood and Paper Board from e-TRIP & the demand of the Iron and Steel Industry, the stages of Input Tax credit has also been increased from presently two to three stages.

But FICO opposed to increase the rate of VAT in Iron and Steel from existing 2.50% + 10 % surcharge to 3.50% +10% surcharge. “It will block the more funds of industry with Excise & taxation Department, already facing major problem of delay in refunds”, said FICO leaders at a meeting held today.

FICO shocked to listen the news regarding increase in VAT on polyethylene, Polyvinyl Chloride, Linear low density polyethylene (LLDPE), Low Density polyethylene (LDPE), High Density polyethylene (HDPE) and polymers of propylene mentioned in schedule B of Punjab VAT Act, Plastic granules, plastic powder and master batches from 6.5% to 9.35%.

“We are expecting 0% VAT on Bicycle Industry but It will put major burden on industry, we request to the government to rollback or withdraw it otherwise industry will be uncompetitive”, said FICO president Gurmeet Singh Kular.

Rajeev Jain Secretary and  Balbir Singh Mankoo Finance Secretary of FICO were among those present at the meeting.