The Punjab government's decision regarding imposition of 10% surcharge on VAT in addition of entry tax has not gone well with city industrialists.
While the government aims to fetch a revenue of Rs 4,000 crore from it, industrialists reason that they would be burdened with additional taxes as already the industry is reeling under power and labour crisis.
Mahinder Aggarwal, general secretary, Punjab Beopar Mandal, said, "The two-member committee formed by Punjab government to suggest new sources of revenue, has recommended increase in VAT from 4 to 5% and additional VAT in lieu of octroi, which will not only hit the industrialists but also the common man as prices of all necessary commodities will increase."
Aggarwal added that they would be organising a meeting with all district representatives to decide when to file a writ petition against the government.
Echoing a similar view, PD Sharma, president, Apex Chamber of Commerce and Industry, said, "The additional surcharge over VAT will lead to more problems for industrialists and we strongly criticize the move."
Talking on similar lines, Vinod Thapar, president of Knitwear Club, said it would be very difficult for the industry as the additional burden would be borne by industrialists.
On the other hand, supporting the move, VK Goel, CEO, Vardhman, said, "The surcharge will definitely have an impact on the cost and will be burden for the industrialists, but if it really helps development of the state then it is a commendable move."