Traders call for a 'relook' on VAT

NEW DELHI: Traders from all across the country have called for a restudy of the proposed value added tax (VAT) regime and urged the government to take effective steps in curbing the ''inspector raj''.
"Government must once again study the existing sales tax system and salient features of the proposed VAT regime to pick and choose those clauses which are in interest of both the administration and trade", said Praveen Khandelwal, general secretary, Confederation of Indian Traders (CAIT).
Addressing the national conclave of the Confederation, he said the new taxation system should be such that revenue generation increases but the traders are not hit at the same time.
Minister of State for Youth Affairs and Sports Vijay Goel asked the traders to prepare a white paper on the core problems as this will help the government tackle the vicious circle of multiple laws.
He said their problems can be sorted out with the process of dialogue with the government which is committed to remove all hindrances in the "smooth flow of business".
Khandelwal said traders do not want to evade tax but are against a complicated administrative process and web of laws.
He said that in an era of reforms, government must simplify the administrative structure and added that the "inspector raj" should be curbed as it is the main obstacle to business growth.
More than 250 trade leaders from all over the country belonging to various trade federations attended the two-day conclave.