Orissa VAT increase to adversely affect business: Traders

Increase of value added tax (VAT) in consumer durable items as proposed in the Orissa budget would adversely affect revenue augmentation measure of the government, a traders' body said here today.   

Customers would purchase goods like refrigerators, washing machines, air-conditioners and four-wheelers at cheaper rates from neighbouring states like Andhra Pradesh, West Bengal, Chhatisgarh, Ganjam District Chamber of Commerce
(GDCC) said.
   
"Compared to Orissa, VAT would be less in these states from April 1. No entry tax would be collected in these states while Orissa would levy two per cent for the same," said GDCC president Rabindra Nath.
   
"With 1% increase in the VAT as proposed in the state budget, the tax difference with the neighbouring states on the consumer durable goods will be widened to about three per cent. The cost of the items will be higher than other states".
   
He urged the government to reconsider the proposal to raise VAT and maintain tax parity with neighbouring states.