GULBARGA: A delegation of the Hyderabad-Karnataka Chamber of Commerce and Industry (HKCCI) led by its president Umakant Nigudgi has urged Deputy Chief Minister B.S. Yediyurappa to continue the exemption of paddy, rice, wheat, pulses, flour and soji from the Value Added Tax (VAT) system for at least one more year until a fresh notification is issued.

In a statement issued here on Friday, Mr. Nigudgi said the delegation had submitted a memorandum to Mr. Yediyurappa in Bangalore during the pre-Budget meeting convened by the latter on January 23.

Other demands

The association's other demands included a reduction of the VAT rate on tractor tyres and tubes, tyres of animal-driven vehicles and coconut oil packed in containers less than 200 mg, from 12.5 per cent to four per cent.

`Withdraw entry tax'

The delegation also demanded that the Government withdraw the entry tax on commodities on which VAT is levied and also the existing entry tax on oil and lubricants and readymade garments. It appealed for a removal of the special entry tax on a few petroleum products after collection of entry tax. It also demanded a reduction of the sales tax on petrol and diesel so it would be on par with that of neighbouring States and would prevent diversion of trade. It demanded that the Government abolish VAT on freight charges as it resulted in tax on post-sale expenditure. It also appealed for an enhancement of the taxable turnover limit for the filing of audit reports, from Rs. 25 lakh to Rs. 50 lakh .

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