Ranchi, March 29: Women fond of cosmetics should lead the chorus for implementation of value added tax (VAT) in Jharkhand.

Introduction of VAT from April 1 could have led to a drop in prices of several commodities, among them cosmetics and medicines, if manufacturers had given a commitment.

However, Jharkhand has decided against implementing VAT as of now and will continue with the existing sales tax regime. In Jharkhand, sales tax on cosmetics stands at 15 per cent. Once VAT is in place, the tax will go down to 12.5 per cent.

Besides ladies, tea lovers should also await VAT. At present, they have to pay 10 per cent as sales tax on tea. After implementation of VAT, they will pay only four per cent as tax. Drugs and medicines too could become cheaper, if the manufacturers agree, as these attract a tax of eight per cent now. Under VAT, sales tax on these will only be four per cent.

Industrialists in Jharkhand are in favour of VAT, and are singing the same tune as its proponents, like West Bengal finance minister Asim Dasgupta, who reasoned yesterday that ?VAT can help common people, industries, trade and also the government?.

The trade, though, differs and associations are campaigning hard for a Jharkhand bandh tomorrow. ?This will be the first time that traders have called for ?bandh? in the state,? said Prem Mittal, vice-president of the Federation of Jharkhand Chamber of Commerce and Industries (FJCCI). The FJCCI protest is based on perceptions that VAT will make compilation of papers and figures a ?complicated affair? and leave traders vulnerable to harassment by sales tax officials. ?Small traders will be the hardest hit,? said a member of FJCCI.

Commercial taxes officials brushed aside the fears. ?Once VAT is implemented, the system will become more transparent and will thus make tax evasion difficult,? said D.P. Shukla, commercial taxes deputy commissioner for the Ranchi East circle. ?We are getting ready for VAT, hence offices are being renovated for installation of computers. As everything will be computerised, there will be no scope for manipulation.?

Whenever a new system is implemented, there is bound to be some confusion but the situation will be sorted out in a month or two, Shukla said.

Notwithstanding the assurances, it is still unclear whether prices would go up or come down in the VAT regime.

Manufacturers whose products will attract a lower VAT than the sales tax that prevails now have not decided on prices. An official described the protest by traders as ?more political than a commercial issue?. ?Evaders will remain evaders,? he said.

Officials also refuted claims that VAT would be charged at every step and jack up prices. ?The penal provisions in VAT are softer than those in existing laws,? they said.