The Delhi Congress, on Wednesday, alleged that the recent VAT (Value Added Tax) 2nd Amendment Bill 2015 was another glaring instance of the Aam Aadmi Party Government’s “U-Turn” on the promises made to the people in the run-up to the Delhi Assembly elections.
This was followed by a massive demonstration by the Delhi Youth Congress (DYC) outside Chief Minister Arvind Kejriwal’s residence where DYC volunteers, led by its president Amit Malik, burnt Mr. Kejriwal’s effigy before being temporarily detained by the police.
Meanwhile, the party’s chief spokesperson Sharmishta Mukherjee said that while Mr. Kejriwal had repeatedly promised the lowest VAT regime to the people of Delhi in his manifesto, now, by amending the Bill that permits the Delhi government to raise the upper limit of VAT from 20% to 30% in the items mentioned in the Fourth Schedule, the AAP government was clearly paving the way to impose more tax.
“This will lead to inflation and put a heavy burden on the people, and dent their pockets. Clearly, the people of Delhi are being misled,” Ms. Mukherjee said.
Ms. Mukherjee also said that the proposed budget estimate to generate Rs. 24,000 crore through VAT was “highly unrealistic” since the growth in revenue collection through VAT fell drastically to 2.03% in 2014-15 as opposed to 13.43% the previous year (2013-14).