THE GOVERNMENT OF KARNATAKA HAS PROPOSED INCREASE THE VALUE ADDED TAX FROM 5% TO 5.5% AND 14% TO 14.5% ON ALL THE SCHEDULES AND PRODUCTS AND THUS THE PRICES OF ALL THE PRODUCTS AND SERVICES, WHICH ARE AFFECTED BY VAT WILL BE INCREASED BY 0.5% FROM 01-08-2012.
2 thoughts on “VALUE ADDED TAX INCREASED IN KARNATAKA FROM 01-08-2012”
Already Karnataka is the state with highest taxation under VAT. Increase in VAT rate by .5% is not a wise decision at all. This shows the how immature d our Chief Minister is. If increasing tax rate would have been right path or answer to all the problems then countries like Zambia, Kango and other poor African countries would have recorded best growth till date.
If he says that drought is the reason to increase tax then I must say that Chief Minister does not have at-least layman’s economic knowledge. He will end-up adding fuel to fire by this increase.
State’s growth prospects already is doldrums, now it will enter in pathetic conditions. I suggest that Chief Minister shall have good control over Commercial Tax Commissioners (IAS babus) who usually come from North India. These Babus do not know ABCD of Karnataka geography. So CM of state shall have a team of persons who have good knowledge of commercial taxation system along with social & geographical fabric of state.
I hope CM Mr.Jagadish Shettar will adhere my view.
Will such voices ever be heard????
But, we must not loose hope !!!!!
Comments are closed.