Centre urged to introduce CENVAT

Special Correspondent

GULBARGA: The Azadi Bachao Adolan has urged the Union Government to replace value added tax (VAT) with central VAT (CENVAT) to usher in a common tax structure for the country.

Rajiv Dixit, convener of the andolan, told presspersons here on Friday that in all the countries where VAT has been introduced, a homogeneous tax regime has been introduced, abolishing all indirect taxes. The same principle should be adopted in India and all indirect taxes withdrawn immediately, he said. Mr. Dixit said the ill-effects of the implementation of VAT are already felt by consumers in States where it has been introduced. For instance, the prices of seeds in those States have increased, he added.

He said that under the VAT system, officials of the Commercial Tax Department and the VAT Commissioner have been given unfettered powers to punish erring traders. The VAT Commissioner has powers to launch criminal proceedings against traders and change the classifications commodities and tax rates through a notification.

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