Patna Electric Traders’ Association on Thursday asked the government to abolish the differences between the entry tax and the value added tax (VAT) levied on electrical goods.
“We have been demanding since the introduction of the VAT Act, 2005 that the rate of the entry tax and the VAT should be equal. At least, the entry tax should not be more than the VAT. The traders have been losing three per cent on account of the 8 per cent entry tax against the 5 per cent VAT,” the association president, Dinesh Agrawal, told reporters.
The state’s commercial taxes department had been levying an entry tax of 8 per cent on electrical goods brought from outside the state whereas the traders bringing the goods get only five per cent on account of VAT, leading to a shortfall of 3 per cent of revenue during the adjustment.
Arvind Mittal, the vice-president of the organisation, said the delegates of the association had met deputy chief minister Sushil Kumar Modi and the commercial taxes department’s commissioner several times on the issue but till date nothing has happened in this regard.
Jharkhand charges no entry tax on electrical goods brought from outside. Bengal charges just 1 per cent, he said.
Mittal claimed that about a dozen electric companies, including Philips, Bajaj, Anchor and Khaitan, had written letters to the association threatening to stop business in Bihar. These firms refused to adjust the amount further, he added.