20000104

H'abad chamber

demands cut in

sales tax ratio

RECORDER REPORT

HYDERABAD: Hyderabad Chamber of Commerce and Industry has said that the levy of sales tax was a great hurdle in the revival of economy and demanded that the ratio of sales tax should be reduced and it should be imposed only on the producers.

In a joint statement issued here on Monday, HCCI president Mehmood Ahmed and Chamber's sales tax sub-committee Chairman, Haji Mohammad Yaqoob said that sales tax was also a great impediment in the development of tax culture.

They also stressed the need for amendments in the sales tax laws as heavy penalty was envisaged in case of any delay in filing the sales tax return.

They argued that tens of thousands of small traders were illiterate and they could neither maintain accounts nor hire the services of an accountant.

They appealed to the government to reduce the ratio of sales tax to only five percent and also abolish the additional sales tax on sales tax.