4 per cent VAT in Sugar & Textile products.
All Odisha Textile & Sugar dealers called two days Bandh
Nabarangpur:
BJD had launched frontal attack on Centre on Petroleum price, How Imposed 4% VAT on Sugar & Textile in Odisha only.
The Orissa government has levied 4 per cent value added tax (VAT) on sugar and textile products. Orissa is the only state that has imposed VAT on sugar and textile products.
The BJD had launched a frontal attack on the Centre on the petroleum price issue by burning effigies of Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi.
On the other hand, it issued an order on May 3, 2011, for imposition of VAT on sugar and textile and asked for collection of 4 per cent VAT with effect from April 8, 2011.
The government officials said after the Centre had abolished the excise duty in lieu of sales tax, the Orissa government imposed VAT of 4 per cent. “As a state share, we used to get Rs 270 crore to Rs 300 crore from the Centre towards tax from sugar and textile. After abolition of the excise tax if we don’t impose the tax, the state will lose huge money. The state cannot afford to bear the loss,” said an Orissa government official.
However, the officials agreed that because of imposition of the VAT, the consumer are now paying Rs 2 more on 1kg of sugar. The all Odisha textile and sugar, dealers (Wholesale & Retail) has opposed the imposition of VAT on sugar and textile in Orissa. Mr. Sushil Jain, one of the executive Member of the dealers said that “Traders across the state will keep their shutters down on May 24 and 25 as a mark of protest.
