Sunday, 1 July 2012

Vijender Gupta strongly opposes recovery of additional Service Tax of about 27 thousand crores rupees by the Govt.

BJP Delhi Pradesh President Sh. Vijender Gupta has strongly opposed recovery of 27 thousand crore rupees as Service Tax from the people in the time of steep price spiral and demanded that the Govt. should immediately stop new taxes so that the people of the country may not feel more burden. 

It may be mentioned that the Delhi Govt. had for the first time imposed VAT on textile and CNG besides other commodities in the Budget 2012-13. BJP has strongly opposed it. The owners of CNG vehicles had also opposed VAT on it. Even the textile merchants were ready for agitation. The Govt. withdrew VAT on textile and CNG due to the movement of BJP but imposed Service Tax on new items which is being recovered even today and now it is being recovered from today. Coaching Institutes and Tanning Institutes have come in the preview of Service Tax. If education and training is brought under the preview of Service Tax than lakhs of poor people may not be able to get their children educated and trained due to which the standard of education will go down and the skilled youth will decrease which will adversely affect development of Delhi. 

Sh. Gupta told that the conditions are so bad that if any family goes to restaurant or hotel for lunch or dinner during holiday than used to pay 20% VAT and now this service has been brought under the Service Tax also. This way if any family goes for lunch or dinner in a restaurant or hotel than it will have to paid 33% as VAT and Service Tax which is growth in justice to the common man. 

He further told that imposing tax on luxury items may be justified but imposing service tax on the items of daily use of common man is not justified. In view of the interest of the people the Govt. should withdraw Service Tax or increased any tax on any item in the present Budget immediately. It may be mentioned that 60% items of total domestic product is within the preview of Service Tax. Previously Service Tax of 97 thousand crore rupees was being recovered which has now been increase to 1 lakh 24 thousand crore rupees. He also said that in the coming time the people of Delhi shall come under the heavy burden of taxes. Govt. should immediately withdraw this anti people decision in the time of price spiral.

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