Graft thrives over VAT in MP

After the implementing the value added tax (VAT) system in Madhya Pradesh, commercial tax evasion has reached a peak.

The inspection centres have become corruption dens, where import as well as export rates of all kinds of commodities are fixed.

Many sugar sacks, which arrive from outside the state are sold after levying 1 per cent commercial tax. The case with gold and silver is also the same.

Corruption exists in the commercial tax department among traders and departmental officials of the state, who encourage businessmen to avoid paying the tax. Nobody in the department bothers to see if the tax is levied and recovered properly.

When VAT was implemented, some improvement in trade was expected. It was expected that the government will also collect maximum possible value added tax to increase the state's revenue; but that was not to happen.

A committee was formed by the government to assist businessmen to assess VAT in accordance with the rules .

and also to ease their problems. But the committee could not function well because of the limited resources available. So, the rules remained on papers.

The VAT system of Madhya Pradesh was supposed to be superior to that of the other adjoining states. The different types of commodities of the adjacent states are being sold without any tax.

Also, the same commodities are being sold in the state as well as outside it without any tax.

The nexus between some traders and businessmen have yielded them illegal returns.