Earlier, president of SGCCI Rajendra Chokhawala urged the commissioner to reduce the sales tax on machinery from the present 8 per cent to 4 percent, pointing out that this would not only stop purchase of machinery from outside the country on the `C form', it would also help state machinery manufacturers to sell more of indigenously built machinery.

The chamber president, while expressing satisfaction over the government decision to reduce items in the list of restricted goods, urged the commissioner to further reduce the list of restricted items. Citing an example, Chokhawala stated that most of those units making plastic bags for packaging sarees and other dress materials had shifted base to Daman only because they had to pay too much in the form of sales tax. Other industrialists also echoed his views that if the sales tax of plastic industry was brought down to reasonable levels, the state plastic industry would witness a spurt.

The members also pointed out that as all bakery items priced at more than Rs 50 per kg were charged with sales tax, they led to a rise in the cost of the final product and hence registered low sales.

They also drew the commissioner's attention towards the 2 per cent tax on yarn, saying that the tax was making the local yarn costlier than that of Maharashtra, as the tax was not in effect there.

Among other issues that were discussed in detail during the meeting were those related to interest, penalty, stay orders, and different forms and documents used in dealing. A statement issued by the SGCCI stated that although the commissioner agreed with the grievances of the industrialists, he expressed helplessness at not being able to make any assurance as the state budget was due soon.