DIMAPUR, MAR 10 (MExN): The Kohima Chamber of Commerce (KCC) today said it was displeased over the fact that the government department concerned is not doing enough to create awareness on Value Added Tax (VAT) in Nagaland.
While appreciating the government’s move of relaxing VAT, the KCC today said in a release, “It may be motioned that that several points were brought to the notice of the department on VAT if implemented now. It was further mentioned that the department should conduct awareness program at various levels since due to ignorance and lack of knowledge on VAT our poor economy would be hampered and many aspiring educated youths and young enthusiastic entrepreneurs may be discouraged.”
Saying that the intention of the government may be to levy tax and to show transparency by one and all, the KCC questioned as to how transparency and survival in business can be achieved when the public and the business community share a nexus with several parallel governments.
The department may be issuing some information and instructions through papers, pamphlets, broachers, etc but it is unfortunate that the practical difficulties faced by the traders are not being made aware of, the release said.
“As stated earlier VAT is something very vague and totally a new concept which the department as well as the public does not know much about and for which we feel that it would be too early and improper to implement at this juncture.”
The KCC has requested the government to consider and review the Act and relax VAT in Nagaland “till we are fully fit to face it.”
Giving a reply, Nagaland Finance Commissioner HK Khulu said the department was very much concerned. We have already met with members of the KCC and discussed the issue at length, he said.
The department has also invited questionnaires from chambers of commerce and business dealers on VAT, he said. Points can also be clarified on a weekly or ten-day basis, the Finance Commissioner said.
According to him, traders are undergoing a fear psychosis because lots of paperwork is involved in processing VAT formalities. He said the department was working in close coordination with all concerned on the issue.
