NEW DELHI, June 10: The PHD Chamber of Commerce and Industry (PHDCCI) has suggested that the multiplicity of sales tax structure should be compressed to four categories varying between zero per cent, four per cent, eight per cent and 10 per cent for essential, general and luxury goods.Lower rates would encourage compliance and fair competition which is essential for growth of trade and industry, the chamber said in a communication to the department of commercial taxation, government of Haryana.
Further, consumer goods in general are taxed at first stage while basic inputs are taxed at last stage. The department should identify more items for collecting tax at first stage, the chamber suggested on Wednesday.Incidentally, 15 commodities have been identified for uniform sales tax rates by the finance ministers of the northern states. The chamber, however, felt that this should be extended to other commodities.
These should include colour/black and white televisions, radio, transistors, audio and visualprojection system, air conditioners, washing machines, microwaves oven electrical goods, cables, transmission equipment, transformers, computers, softwares and computer peripherals, building hardware, sanitary-ware and ready-made garments including knitwear, hosiery goods and leather garments.
The chamber pointed out that a complex taxation system also leads to an unhealthy collusion between tax evaders and the concerned implementation authorities and staff.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
