Charge uniform 1% VAT, govt told

A middle-class income group, whose members have bought flats between 2006 and 2010, has appealed to the state government to charge only 1%  value added tax (VAT) instead of present 5%.

The group recently submitted their opposition in a letter to deputy chief minister Ajit Pawar, and they now want to present it to chief minister Prithviraj Chavan.

“There should be uniformity in the taxes. The post-2010 buyers having 1% VAT and buyers between 2006 and 2010 having 5% VAT will create discrimination. It has resulted in a serious disparity in the method of calculating VAT. Developers are taking undue advantage of this situation and collecting excess amounts,” the group stated in their letter.

They further stated that a substantial increase in interest rates along with inflation has already created a bigger hole in their pockets. “The 5% VAT demand has come as a big jolt to us. Besides the 5% VAT, builders are demanding 15% interest by September 30, citing the Supreme Court’s order. The government should give us the 1% composition scheme introduced in April 2010.”

“We have already paid the stamp duty and registration charges, which are almost 5% on the purchased value,” the group said, adding that “the 5% VAT is not only exorbitant, but is also completely unfair and illogical”.

This collective group of citizens have bought their dream homes between June 2006 and March 2010 using their lifelong savings.

“We are already facing major problems in repaying the loan, besides meeting our increased household expenses. It is next to impossible for many of us to pay such a high amount suddenly and will result in a serious financial crisis for all of us, who are solely dependent on salary income to meet our monthly needs,” the group added.