Jamshedpur, March 10: The state government is likely to face hurdles in implementing the new value-added tax (VAT) as the Chambers of Commerce and Industry are up in arms against some of the provisions of the new tax system.

VAT would be implemented in the state from April 1 in the coming financial year. State finance minister Mrigendra Pratap Singh has already hinted that the state government would implement VAT according to the Centre’s instructions.

Over 25 chambers of commerce from the state are meeting at Ranchi on March 25 to discuss the new system of taxation and a collective decision will be taken by top functionaries of these organisations to protest against some of the rules in the new system. The meeting is being organised by the Ranchi-based Federation of the Jharkhand Chamber of Commerce and Industry (FJCCI), previously known as the Chhotanagpur Chamber of Commerce and Industry.

“We felt that there is a need to organise a meeting of different chambers of commerce and industry to discuss the issue. Till now, we do not have the slightest inkling of the new system of taxation. It has been gross injustice on the part of the state government not to take the business community into confidence before implementing VAT in the state,” FJCCI president Gulsan Ajmani told The Telegraph from Ranchi.

FJCCI insiders hinted that a large number of these organisations have already submitted memoranda to the state government, requesting the latter to take them into confidence before implementing the new VAT structure. “But there has been no response from the powers that be. If the business community does not understand the nitty gritty of this new system of taxation, how are they going to pay the tax?” queried Ajmani.

“If there is unanimity among the members present in the meeting, we can boycott VAT in the state like the businessmen in some other states, who have already done so,’’ said a senior official of FJCCI. On January 30 this year, the city-based Singhbhum Chamber of Commerce and Industry (SCCI) held a meeting to discuss the issue and a unanimous resolution was adopted to oppose some of the provisions of VAT.

The provisions include compulsory sale tax audit for traders and businessmen, whose turnover is up to Rs 40 lakh per annum, low registration fees, rules pertaining to penalty provisions and so on.

“We will attend the March 25 meeting as we have been invited,” SCCI president Nirmal Kabra said. According to him, unity among the business community on the issue was the need of the hour. According to SCCI general secretary, Suresh Sonthalia, the organisation has been receiving requests from different businessmen and traders to help them clear the doubts.