Nagpur: Maharashtra Government has increased the rates of Maharashtra Value Added Tax (VAT) on certain commodities in place of 5.05% to 6% and from 12.5% to 13.5% from September 17, 2016.
During the Annual Budget proposals the Government had levied 0.5% tax which is being accepted by the traders looking the loss due to withdrawal of LBT. After six months the hike in MVAT rates is not understood.
There is a great recession in markets since last two years, in spite of recession traders are paying taxes regularly and government is achieving target. The midterm tax increase habit & practice will severally disturbs the trading activity of the State. Festivals are ahead & peoples will get a gift of price increase in petrol/diesel & trading. GST bill will introduce most probably from April 1, 2017 hence Government have to wait.
Traders are forced to change their accounting software. Traders have to keep records of 2nd Quarter VAT in two categories. VAT returns are on Monthly, Quarterly, Six Monthly, Yearly pattern and hence the mid-month increase will put traders in a fix. Nag Vidarbha Chamber of Commerce appeals the Government to withdraw the VAT Rates till the imposition of GST.