Staff Reporter

Finance Minister urged to reduce Service Tax

VIRUDHUNAGAR: The Virudhunagar Chamber of Commerce and Industry has attributed the increasing cost of several goods to the online trading of goods, price hike of petroleum products and Service Tax.

In a memorandum addressed to the Union Finance Minister, P. Chidambaram, its president, V.V.S. Yogan, said the inflation has gone up to 5.95 per cent now from 3.86 per cent in January 2006. The increase in price of several goods has caused the inflation.

The fuel price hike has had a cascading effect on transportation charges causing an increase in price of various goods. Besides, increasing the service tax and bringing many more services under the service tax net has also resulted in price hike of goods.

Stating that the crude oil price has come down to 50.24 US Dollars, he urged the Minister to reduce the fuel price. Service tax should be brought down to 5 per cent.

Besides, the online trading without physical delivery of goods has led to fluctuation of their price, the memorandum said. Hence, the margin money to be paid by online traders should be increased to 50 per cent of the goods cost from the existing 5 per cent, the chamber said.