In a move that has shocked the industrialists, the SAD-BJP government has increased the VAT processing fee. In a recent notification the Government has increased the compulsory annual VAT return as follows: 0 to 1 crore Rs. 1500, 1 to 5 crore Rs. 2500, 5 to 10crore Rs. 3500 and above 10 crore Rs. 5000.

Earlier there used to be no fee. When the SAD-BJP Government came into power for the second term, they kept this fee at Rs 800 for all categories. However, just after a year, they have increased it. Today a delegation of Federation of Industrial and Commercial Organisation( FICO) under the presidentship of Gurmeet Singh Kular met Dr Rishi Pal Singh, Deputy Excise Taxtation Commissioner, Ludhiana, regarding the increase in vat return processing fee.

Kular said, "this fee was Rs 800 for all categories. It is a huge burden on industries because the annual VAT return fee was already on the higher side as compared to Income tax Department, which charged for TDS and TCS returns. This fee should not be more than Rs 50 and the government should stop the taxing spree. Already the state government has imposed many taxes on us."

It was further said that huge amount of VAT refund was blocked with the Department of Excise and Taxation which was neither releasing it online nor by voucher.

The industrialists said that the C-form should be given online as finalised by the government.

Among those who were part of the delegation were Jagatvir Singh, vice president United Cycle Parts Mfrs. Association; Rajeev Jain, president Laghu Udyog Bharti, Ludhiana and general secretary UCPMA; Parveen Kumar, finance secretary, Wholesale Cycle Market, Gill Road, Ludhiana; Rajnish Gupta, chairman, Ludhiana Bicycle and Engg. Park; and Harpal Singh Bhamber, president Janta Nagar Small Scale Mfrs. Association Ludhiana.