The consumers are already burdened with price rise and the state government's present hike in VAT on a few important goods has put more burden on them, said Gaddam Subba Rao, president, The Vijayawada Chamber of Commerce and Industry.
He feels that the hike is a punishment for honest trader and it also leads to more evasion of tax and corruption.
The Government of Andhra Pradesh issued orders to hike 2 per cent on VAT from 12.5 per cent to 14.5 per cent on certain goods like cosmetics, electrical goods and appliances, automobile spares and some other goods. Most of the entrepreneurs are now opposing the hike.
P Kameswara Sarma, president, The Vijayawada Electrical Dealers Association opposed the hike on VAT on electrical goods. He said that though some other states are now collecting only 4 per cent of VAT on electrical goods, why our state Government decided to hike the tax. He said that in this condition, the business from our state may divert to other states, particularly to Karnataka and Tamilnadu.
He said that Karnataka and Tamilandu are collecting only 4 per cent tax on electrical goods. He requested the Government to roll back the hike
A general goods dealer T Sivaramakrishna said that nowadays cosmetics have become essential goods and imposing higher tax on the goods is a burden on common man. Soaps, detergents and toilet powders are essential for common man, he said and government should reduce the tax on these cosmetics.
An electrical dealer Ramesh Jain said that why government had taken such a hasty decision when the Union Government is contemplating to bring Goods and Services Tax instead of VAT from the next financial year.
Gaddam Subba Rao said that all Chamber of Commerce and Industries committees from coastal districts will meet in Vijayawada on 19th of this month to decide the future course of action.