FKCCI seeks VAT relief

 A high-powered FKCCI delegation lead by R Shivakumar, president of the nodal industry body and Sudarshan Tirunarayan, Secretary-General, has sought relief from Karnataka Chief Minister Siddaramaiah in the areas of VAT, trade licenses and other issues faced by MSME/SMEs in the state.

Shivakumar on Thursday said that the rate of VAT charged presently at 14.5 per cent is too high and it has become uneconomical for industries to operate in the state. “The reduction as promised in Budget 2013-14 should be adhered to by reducing it to pre-tax levels of 14 per cent and 5 per cent respectively,” he said.

He stressed that the target for tax collections will be easily met resulting in surplus of around Rs 800 crore during fiscal 2014. The Federation is currently addressing issues on new registrations at the taluk levels for higher tax collections and the process has already been put in motion.

On abolition of Trade License under KMC Act, Shivakumar stressed that the industry needs to be exempted from the Act as its units are covered under various statutory laws. The trade license is causing unnecessary burden and causing financial stress to the business community along with the process of renewals, he said.

Chief Minister Siddaramaiah assured the delegation that he would consider its suggestions.

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