AAP govt forced to roll back VAT after stiff protest by traders

“Disillusioned voters of Delhi are already raising their voice of dissent against AAP government and now the traders of Delhi have joined the ranks of dissenters. Facing widespread protest from traders of Delhi, AAP government was forced to roll back its decision to introduce VAT on low cost textile and footwear.”

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 In the budget proposed for the financial year 2016-17, Deputy Chief Minister and Finance Minister Manish Sisodia announced to levy 5 per cent Value-Added Tax (VAT) on all textiles and footwear, including those under Rs 500. This decision raked up widespread protest from traders, as it would have severely affected their business especially those dealing in low cost products of below Rs 500.

Burden on ‘Aam Aadmi’

The proposed increased 5 percent VAT on footwear and textiles would have imposed a huge burden on the common man especially in the wake of VAT introduced on the low cost products. It must be noted here that the proposed move would have caused disparity between corresponding VAT rates in neighboring states and resulted in out flow of business to other states. This would caused heavily on the traders of Delhi and small time traders would have run out of business in wake of this draconian rule. This is when they rose up in arms against the proposed imposition of VAT and Delhi government was forced to roll it back.

AAP’s double standards exposed by protest on hike of excise duty on gold jewelry

This move has exposed the double standards of AAP government. While on hand they are opposing the central government’s proposed decision to hike 1% excise duty on gold jewelry. Also they are opposing the move of presenting PAN number on purchase of jewelry above Rs 50,000. This would bring transparency in high stake business and revenue thus generated could be utilised on development work. AAP is opposing this move tooth & nail which only proves the fact that they are only concerned about a coterie.

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Fissures among AAP government exposed

“Arvind Kejriwal who has the dubious distinction of functioning in a dictatorship style has been taking all the party decision single handedly. There was never a voice of opposition against AAP supremo but now murmurs of dissent have started appearing in public.”

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 In the budget presented for the financial year 2016-17, Arvind Kejriwal led AAP government decided to impose 5% Value Added Tax (VAT) on textile and footwear. This unprecedented move invited public ire, which would have severely affected the small traders in particular. While kejriwal was hell-bent on going ahead with imposing VAT, few of the AAP legislatures were opposed to this move.

Three AAP MLAs opposed the move

While the government proposed to levy 5 per cent tax on textile and footwear, while presenting the budget for 2016-17, AAP MLAs Alka Lamba, Madan Lal and Vishesh Ravi opposed the move.

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Traders of Delhi had opposed this move tooth and nail as in the wake of tax disparity between neighbouring states, this move would have resulted in out flow of business to other states from Delhi. Three AAP MLAs supported the protesting traders and Kejriwal was forced to roll back his decision.

Signs of cracks in party

Kejriwal managed to lead the party with no other leader raising his/her voice especially when it came to taking crucial party decisions. But every dictator’s time comes to an end and Kejriwal is no exception either. His own party folks are rising against him.

This could be termed as positive move as it will make AAP supremo and Delhi CM more accountable and will force him to be more considerate for the issue of common public at large. But unfortunately this too little and too late!

AAP to increase VAT again, befooling the public

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More items would be included under VAT ambit

The AAP regime in Delhi is going to loot the public again as the government has been planning to hike VAT third time. Moreover, several other commodities would be put under the ambit of VAT to achieve the set targets by the government.

As per the information, the AAP government had set the target of Rs 24000 crore from VAT collections but when the government had failed to achieve the target, the target was scaled down to Rs 21000 crore. According to the latest information, the government is going to hike the VAT to achieve the targets.

Third time the AAP would increase VAT

The government is also planning to increase VAT on several other items. According to the government officials, it has been decided by the concerned department to put more than five per cent VAT on plastic waste, textile items and readymade garments costing more than Rs2000. The VAT would be increased on wheat, rice flour and on the distribution of motion pictures.

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Even the VAT would be increased on UPS from five to 13 per cent. Liquor and tobacco products would be costlier as VAT would be increased by 25 per cent this time. The government has been taking the step to increase the hike to achieve the more targets. Accoding to latest figures, the VAT department has generated only Rs 19000 crore from VAT.

AAP to put other commodities under AAP ambit

An official told the media, “In order to increase our collections, the department had proposed to bring certain items under VAT and also recommended tax hike on other products to generate additional revenue of about Rs 50 crore.”  The government had promised the public of Delhi that there would be no price hike by the government. However, the AAP government broken its promise by levying VAT on Petrol and Diesel twice in a year and this time, it would be the third time when the hypocrite Kejriwal government is going to hike VAT.

AAP would give the shock to people in second budget

The ruling AAP would give shock to the residents of Delhi third time as it has been decided by the government to introduce the increase during the second budget in the assembly.

As per the information, the hike proposal was sent to Manish Sisodia, the Deputy Chief Minister of Delhi but the old friend of Kejriwal played a stunt and asked the officials to make it as a part of the budget speech for the financial year 2016-17.

An AAP leader told media, “It is better to introduce new taxes only through the Budget document duly passed by the state legislature.”

Reference:

http://www.asianage.com/delhi/aap-government-plans-include-more-items-hike-vat-324