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ASSOCHAM wants MP to abolish 4pc VAT levied on traders,pvt cos
May, 17th 2012
The ASSOCHAM here today requested Madhya Pradesh to abolish four per cent VAT levied on traders and private companies with a turnover of more than Rs five crore on wheat in view of the various problems being faced by farmers and the state government. The record production of wheat this year in the state has led to the problems of storage, shortage of bags, delay in purchase and wastage of the crop. The Co-Chairman of ASSOCHAM (The Associated Chambers of Commerce and Industry of India) Task Force on Madhya Pradesh, Chhattisgarh and Orissa, Anil Agrawal, in a letter to Chief Minister Shivraj Singh Chouhan said the imposition of VAT discouraged traders and private companies from trading in wheat because of tax disparity between Madhya Pradesh and other states. "Because of this, trading in wheat has become unviable for traders and private companies.

Wheat purchase by private sector has come to almost halt in the state," he said. Agarwal has further said that removal of VAT will lead to wheat purchase by traders and private companies and thereby solving various problems being faced by farmers and the government. The private trader will be able to dispatch wheat not only outside the state but possibly also export it besides making own arrangements for storage. He expressed hope that the state government will seriously consider this suggestion and will take appropriate decision in this regard. The copies of the letter have also been given to State Finance Minister Raghavji, Industries Minister Kailash Vijaywargiya and Minister of State for Food Paras Chandra Jain for necessary action.
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