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West Bengal: `VAT likely to boost exports'

KOLKATA: The value-added tax (VAT), proposed to be introduced from April 1, is likely to boost the country's exports, Mr Adesh Kumar, Assistant Commissioner, Commercial Taxes (VAT Cell), West Bengal, said here on Friday.

Addressing the Eastern India Ball Bearing Merchants Association, he said the exporting community would be one of the biggest beneficiaries of the VAT because of the full refund it would get on the tax paid on inputs.

Elaborating on the three main reasons behind introduction of the new system, he said it would broadbase revenues, arrest the cascading effect of taxation (now caused `by paying by taxes on taxes') and would also introduce procedural simplification.

Mr C.R. Chindalia, President of the association, suggested some `trade-friendly' steps which, he said, would boost trade in the region. These included keeping VAT on bearings at a minimum level because they were a vital input. He also wanted the paperwor k on VAT to be minimised so as to promote transparency. -- Our Bureau