Ludhiana, August 20, 2012: Local industry is shaken after it learnt about a proposal of the state government to increase value added tax (VAT) by 0.5 per cent.
Speaking to City Air News today, the Federation of Punjab Small Industries Association (FOPSIA) Badish K. Jindal said,” We strongly condemn the proposed hike of 0.5% in VAT”. He pointed out that the industry of Punjab was already passing through recession and paying the highest rate of VAT across the country.
Adding, Jindal said on the other hand, other states were offering VAT subsidy to the new industry. He believed that the proposal, if implemented, would surely be termed as “anti-industry”. He pointed out that the VAT collection had already increased from Rs. 4,500 crore to Rs. 12,000 crore last year.
Jindal warned that the industry would not have any other option except to shift to other states , if the state government did not stop taking such decisions in the future.
Meanwhile, an emergency meeting of the office-bearers of United Cycle and Parts Manufacturers Association (UCPMA) held here today. The meeting was presided over the association president Gurmeet Singh Kular.
The today’s meeting held discussions on proposed 0.5 per cent hike in VAT rate, and another proposal to introduce “professional tax” and “property tax” by the Punjab Government. The meeting observed that the service tax had already been imposed.
Kular said the cycle industry was already passing through crisis. He too pointed out that there existed 1% extra tax in Punjab as compared to other states.
Adding, Kular apprehended that the industries would close down if the state government introduced fresh taxes on it.
Among others, the meeting was attended by Inderjit Singh Navyug (Senior Vice President) Harjit Singh Sondh (Vice President), Pardeep Wadhawan (Secretary), Baljit Singh Lotey (Joint Secretary), Ajit Kumar (Propaganda Secretary) and Achhru Ram Gupta (Finance Secretary).