Bihar Chamber of Commerce (BCC) on Monday expressed concern over the proposed 1% enhancement in VAT rates to 5% in Bihar. 

BCC president P K Agrawal said at the time of implementation of VAT from April 1, 2005, the state government had assured the members of trade and commerce that that it would follow the pattern of West Bengal in all the matters regarding VAT and in framing VAT Act, rules and its rates.

The announcement was made at the `VAT panchayat' held at the BCC building on December 12, 2005, in the presence of the chief minister and deputy chief minister, he said.

He said discussions are on in New Delhi to replace VAT with Goods and Services Tax from April 1, 2010. In view of this, there was no need for the state to increase the VAT rate which would only create confusion in business community, he added.

He said the proposed 1% increase in VAT would lead to rise in prices of various commodities in Bihar compared to other states.