Mid-term revision of tax rates unwarranted: Assam industry

The industry has decried the Assam government's "practice" of arbitrary mid-term revision of taxes.

The industry is of the view that tax rates should be revised in the state budgets and the government should avoid mid-term revision of taxes.

While referring to the recent hike in value added tax (VAT) rate of fifth schedule items from 12.5 per cent to 13.5 per cent, RS Joshi, chairman of Federation of Industry and Commerce of North Eastern Region (FINER), said the "sudden" increase in VAT rate was "unjust" given the economy was suffering from slowdown and the market was fighting price-rise.

He said there had been "reasonable" growth in VAT collection in last fiscal and hence there was no need for the government to suddenly and arbitrarily hike VAT.

"Even six months have not passed since the budget was passed and suddenly one day evening you come to know that VAT has been increased. When the economy has slowed down, we were expecting some stimulus package, rather VAT has been increased. The state government should have consulted the industry and other stakeholders before taking the decision," said Joshi.

"Government should concentrate and focus on widening of tax net, revenue leakage and better tax administration, which will help increase revenue substantially. Revision from mid of any month increases lot of accounting and compliance problems," he added.