'Spare henna from VAT'

The Mehandi Vypar Sangh has requested the Rajasthan government to keep natural mehandi (henna) out of the purview of the value added tax (VAT).

The association, in a memorandum, addressed to the Principal Secretary-Finance Rajeev Mehrishi has said mehandi trade is small and it is an agro-based business, so it will not be good for the trade to be brought under the VAT.

The people engaged in this business are mostly semi-literate or not much educated and would not be able to cope up with the cumbersome paper work associated with the VAT system, the body has said in its memorandum.

Mehandi trade is mainly located at just two centres in the country, Sojat City in Rajasthan and Faridabad in Haryana. However, most of it is centred at Sojat City from where 70 percent of the business is conducted.

In all, there are about 120 units, big and small, engaged in this trade aggregating a turnover of Rs 100 crore, including export worth Rs 15 crores. All these units fall under the tiny industries category.

Calling for removing the VAT on henna, the association has said two states, Uttranchal and Gujarat, have kept mehndi free from the VAT in this year's Budget and looking at the fact that the state government will not lose much revenue if this item is kept out of the VAT, Rajasthan, too, should not impose the tax on it.

The memorandum has said mehendi is closely associated with the sentiments of Indian women of all religions and faith. Mehandi stands on equal footing with sindoor, kajal, kumkum and bindi, which have been exempted from the VAT.

"Then why should mehandi be put under purview of the VAT, the association has asked in its memorandum.