The Hindu : Andhra Pradesh News : Industrial houses promise to readjust MRP: Asim Dasgupta

Online edition of India's National Newspaper
Monday, May 16, 2005

Andhra Pradesh

Andhra Pradesh

Industrial houses promise to readjust MRP: Asim Dasgupta

Staff Reporter

Empowered Committee on VAT holds discussions

PRIORITIES SET: The West Bengal Finance Minister, Asim Dasgupta. Photo: Ramesh Sharma

HYDERABAD: Important industrial houses have given an assurance to the Empowered Committee on VAT that they will readjust MRP in the new tax system in three weeks.

This was stated here on Friday by Asim Dasgupta, chairman of the committee and West Bengal Finance Minister, while talking to presspersons. He held discussions with the Finance Minister, K. Rosaiah, and the Commercial Taxes Minister, K.Ramakrishna, representatives of the Federation of AP Chambers of Commerce and Industry and traders of footwear and coffee.

Mr. Dasgupta stated that although there was a flat rate of taxation there had been no fall in the MRP of commodities. "This (non-reduction of prices) can't continue", he pointed out. The West Bengal Minister said the committee would monitor the retail prices of commodities every month.

The committee would undertake a review of VAT, which was introduced on April 1, and the problems arising out of its implementation, at the end of the first quarter, ie, on June 1. The problems were specific to each State. The committee was aware of them and was confident of finding solutions at the end of the first quarter. Such problems were faced by all countries which switched over to VAT.

Mr. Dasgupta described Andhra Pradesh as "a pioneer" in the implementation of VAT. The State had prepared well and was way ahead of others. One of the major problems affecting the footwear industry in the State "historically" was that the raw material was coming from other States.

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