Opposition trying to create misconception on VAT, alleges AAP

Amid sharp criticism over the VAT Amendment Bill, the Aam Aadmi Party (AAP) on Tuesday said that the opposition has been trying to create misconception among the people.

AAP spokesperson Raghav Chadha urged the opposition parties to take a good look at the VAT Amendment Bill.

"A few things have been mentioned in the Bill that requires study. One is that, the Sheila Dikshit Government had increased the VAT's penalty that used to be imposed on traders by five percent. Our government reduced it. Secondly, according to the Bill, there is a Schedule IV, which mentions goods like tobacco, alcohol, etc. 12.5-20 percent tax used to be imposed on such goods. We said that the legroom of the Schedule be increased to 30 percent. We never increased the VAT. We have just tabled the amendment for the flexibility of VAT department. The 30 percent expansion decision has been taken with this motive," Chadha said.

"And, this decision has been taken not only by the Delhi Government. Northern Ministers' states finance ministers had a meeting where it was decided that under the principle of uniformity, VAT will be imposed on everything so that it doesn't happen that a product which is available at Rs. 90 in Delhi is priced at Rs. 100 in Haryana. Geographical arbitrariness in taxation happens and that is what we wanted to reduce," he added.

Delhi Pradesh Congress Committee (DPCC) chief Ajay Maken, earlier in the day, alleged that the Arvind Kejriwal-led Aam Aadmi Party (AAP) Government's move to increase the upper limit on Value Added Tax (VAT) reflects their immaturity.

He had said that it was extremely shocking that the AAP, which had during the Delhi Assembly polls promised to lower the VAT, have increased the same from 20 percent to 30 percent.

The Delhi government moved a proposal in the assembly on Monday to increase the upper limit on VAT from 20 percent to 30 percent, opening up the possibility of maximising the levels on 11 items, including piped natural gas, compressed natural gas, kerosene, liquor, lottery tickets, tobacco and gutka.