Paint manufacturers demand review of VAT

Kolkata, Dec 24 | Updated: Dec 25 2004, 05:48am hrs
Paint manufacturers have expressed concern that if the proposed value-added tax (VAT) was implemented in its present form, small units might be adversely affected.

Announcing this at a press conference here on Friday, chairman of the Indian Paint Association (IPA) DP Basu said unless a thorough review of the laws and procedures of VAT were made, then small paint manufacturers would not be able to withstand competition.

He said that IPA had come forward with some suggestions including that VAT rates on different commodities should be uniform throughout the country.

The association also demanded that introduction of VAT should be accompanied by abolition of sales tax, purchase tax, octroi, consumption tax, luxury tax and other levies on the sale or movement of goods across states.

IPA also said the proposed VAT legislation was ambiguous as it did not cover the central sales tax (CST).

The association said that if CST was not abolished, then industry and trade would have to grapple with two sets of materially different legislations.

On the Small Enterprises Development Bill 2002, the association said that the proposed formulation of National Small Enterprises Board should also deal with functions like marketing in overseas countries and getting easy and cheap credit from banks.