‘Bring in Goods and Services Tax’

Published - February 28, 2015 08:38 am IST - CHENNAI:

Photo: M. Prabhu

Photo: M. Prabhu

The government must implement a Goods and Services Tax (GST) to replace various existing taxes, say traders dealing with various commodities in the city.

Ahead of the Budget 2015-16, traders feel that the government must implement the GST to reduce the burden of paying different taxes such as value added tax, excise duties and service tax. Praveen Mehta, president, Federation of Madras Merchants and Manufacturers Association, said GST will simplify pricing and reduce delay in inter-State goods transportation. The uniform tax structure across the States will help stabilise prices also.

Traders also demand that the government must ensure that the decrease in fuel prices be reflected in the prices of essential commodities. Manish Parmar of Madras Kirana Merchants Association said the government must come up with long-term plans to support agricultural activities and ensure food security.

According to paddy traders, though the paddy yield was less by five percent this year, it has not affected the pricing. The budget must give priority to farmers’ needs, said M. Jayapalan, vice-president of Red Hills Paddy and Rice Wholesale Merchants Association. “The subsidy given for the purchase of farm equipments must be extended to the full term of the loan period. Now, after the initial three months, the subsidy is withdrawn for even tractor loans and farmers have to pay 13 per cent interest,” he said.

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