CM to discuss matter with Tax Department
Chizokho Vero
August 14
KOHIMA (MExN): The Value Added Tax (VAT) has not been received well by the business community in the State as the Nagaland Chamber of Commerce (NCC) today sought Chief Minister Neiphiu Rio’s intervention to defer the implementation for a few more years.
VAT was enforced in Nagaland from April 1, 2005, to ensure transparency in taxation and facilitate provision of input tax credit for all eligible purchases. The Chief Minister had given a patient hearing on the plight faced by the business community in the State. Rio assured the delegation of the NCC that he would initiate necessary discussion with the Tax Department and see that better understanding prevails between the business community and the department concerned.
“We welcome VAT but we need to know the implication first”, NCC President T. Solo told The Morung Express. He said it was too early for the State to implement the VAT provisions. He argued that the VAT regime was pushed through without proper notice to the general public and at the same time the business communities were not consulted before the enforcement.
“Even the government does not have much knowledge about the system”, he remarked, adding that it was the duty of the department concerned to create adequate awareness among the general public and the business community. “VAT will be good enough for Nagas when Nagaland government is free from corruption, extortion and intimidation,” said NCC treasurer, P. Suokhrie.
Maintaining that the State revenue will rise to double with the introduction of VAT, Suokhrie however, doubted the transparency of the government, adding “more corruption will be encouraged”, Suokhrie pointed out.
Earlier, the NCC in its memorandum addressed to the Chief Minister said the implementation of VAT in Nagaland along with other states had caused unprecedented inconveniences and unwanted procedural hazards.
“The imposition of VAT in the present form shall have a severe economic cascading effect and inflationary tendencies on all commodities, especially on essential commodities”, the memorandum stated further adding that Nagaland being a special category State under Article 371(A) of the Constitution, it needed to be nurtured in a manner that the welfare and the interest of the people was uppermost. NCC representatives strongly felt that to enforce the VAT system in Nagaland in a hurried manner could invite unscrupulous elements to take undue advantage of the situation and the people’s suffering could be multiplied.
The NCC requested the Chief Minister to defer the imposition of VAT for a few years till it was appropriately modified and amended in consultation with business community to suit the economic situation.
The Chamber of Commerce Kohima also gave the opinion that Nagas, had not reached the stage where they could maintain such huge documentations. “We are still in our infancy stage in business and hardly maintain our own business establishments.
A trader may find it impossible to maintain such records and produce it to the authorities”, it was stated.
