The Hindu : New Delhi News : Concern over budget proposals

Online edition of India's National Newspaper
Wednesday, Jul 28, 2004

New Delhi

New Delhi

Concern over budget proposals

By Our Staff Reporter

NEW DELHI, JULY 27. The All India Tax Advocates Forum has expressed apprehension that as against protecting the distinct distributive character of the metropolis, the Delhi budget may disrupt the trading activities especially in the medium and small scale sector and therefore hit the common man and particularly the poor people very hard.

Questioning the legitimacy of doing away with the footnote as applied to the ST-35 forms, the forum president, M.K. Gandhi, feared that the move may lead to double taxation particularly for those in the small scale sector. With raw materials being taxed first, the price of the manufactured goods would get inflated and thereafter levying of another tax would take place.

"The proposal along with tinkering of the tax slabs in the huge inter-State trade is bound to complicate further the revenue realization exercise," the forum president said, calling for a rethink over the latest tax proposals and suggesting recast of the ST-regime to protect the interests of millions of traders and consumers for both short term and long-term economic goals.

The Forum also expressed deep concern at the increase in diesel prices and added tax on garments. "The first proposal will have a cascading impact on prices of all commodities including fruit and vegetables, while the latter will adversely hit the huge garment industry providing employment to a large number of skilled and semi-skilled workers."

Describing the Delhi Finance Minister, A.K. Walia's assertion to streamline the tax-regime as a mere"pipe-dream'', the forum president also criticised the creation of special cells within the Sales Tax Department saying it was bound to create added bureaucratic bottle-necks, promote Inspector Raj and would thereby lead to the harassment of traders. He also came out strongly against withdrawal of the tax concessions in the area of inter-State trading and the imposition of 4 per cent tax on oil cake and de-oiled cake used as cattle fodder, but welcomed the hike in the summary assessment limit to Rs. 2-crore from the existing Rs. 1 crore.

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