"Continuation of CST will make products costly"
Puducherry: The Puducherry Chamber of Commerce has urged the administration to grant subsidy to industrialists and merchants here to ensure that they did not face hardships in the event of the administration adopting Value Added Tax (VAT).
Its General Secretary A. Balasubramanian told newsmen here on Tuesday that a delegation of the chamber led by its president N. Govindasamy presented petitions separately to Lt. Governor Mukut Mithi and Chief Minister N. Rangasamy on Friday highlighting the hardships of industrialists and merchants relying on other States to get raw materials and for selling finished goods if the VAT and the Central Sales Tax co-existed. He said that there was a strong indication that the VAT would be enforced here from April 1.
The four per cent CST, which would be imposed simultaneously for raw materials procured from outside the Union Territory, would make the products costly. Consumers and tourists visited Puducherry with prices of most of the products costing less here than other States. Now, the situation would become reverse. If there was no grant of subsidy, the industrialists and merchants would reconsider the propriety of running business here.