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`Scrap service tax on goods transport agency'
January, 27th 2007
The Tamil Nadu Chamber of Commerce and Industry has urged the Union Finance Ministry to withdraw service tax on goods transport agency.

He also asked the Forward Markets Commission (FMC) to abolish futures trading in all essential food items, as it did in urad and tur, on all bourses with immediate effect in order to bring down effectively the prices of essential commodities and check the inflationary trend in the country.

In a statement here, the chamber President, Mr S. Rethinavelu, said the decision of the Union Finance Ministry to slash customs duty on Portland cement, primary and semi finished metals and certain specified capital goods and the directive by the FMC to suspend futures trading and delisting of all contracts of urad and tur are taken with a view to bringing down prices. They would cause little or no impact in checking the rising prices of all essential commodities and the escalating inflation rate in the country.

The surging logistics cost is one of the main driving forces constantly impacting the rise in prices of commodities, especially essential food items, transported mainly by road transport throughout the country. The levy of service tax including education cess on goods transport agency constitute sizable component in the cost of many products. The Union Petroleum Minister has even called for the withdrawal of service tax on survey and exploration of minerals along with removal of excise duty on diesel in a phased manner to bring down the diesel prices, he has pointed out.

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