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FKCCI seeks to reduce VAT rate to 14%

Bengaluru, Oct 4 (KNN)  The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) seeks relief from the Chief Minister Siddaramaiah to reduce the value added tax (VAT) rates from 14.5 per cent to 14 per cent with immediate effect.

FKCCI delegation led by its President R Shivakumar and Secretary-General, Sudarshan Tirunarayan along with Chairman of State Taxes Committee, FKCCI, B T Manohar met the CM on Thursday to press for urgent relief in the VAT rates.

Shivakumar also stressed that the target collection of the taxes will be easily met, resulting in a surplus of around Rs 800 crore during the fiscal year.
The federation has been addressing issues on new registrations at the taluk levels for higher tax collections and the process has already been put in motion.

On abolition of Trade License under KMC Act, Shivakumar said that the industry needs to be exempted from this Act as its units are covered under various statutory laws.
 
The Trade License is causing unnecessary burden and leading to financial stress on the business community along with the process of renewals.

MSMEs/SMEs are on the verge of closure due to the lack of skilled manpower, high interest burdens, outdated technology and a lack of availability of start-up funds for the new ventures, he said, seeking the help of the government for the establishment of a separate cell on MSMEs.

FKCCI, he said, would participate in the proposed meet at Chamarajnagar for the development of the district to attract other investors to the district.

The federation also suggested development of a Turmeric Park in the district.

Siddaramaiah assured the delegation that he would consider its suggestions.