Removal of VAT: Cycle makers meet SAD industrial wing chief
United Cycle and Parts Manufacturer Association (UCPMA) that has impressed upon the need of zero per cent Value Added Tax (VAT) on bicycle and cycle parts is now hopeful that their demand would be met anytime now by the state government.punjab Updated: Jan 08, 2015 15:00 IST
United Cycle and Parts Manufacturer Association (UCPMA) that has impressed upon the need of zero per cent Value Added Tax (VAT) on bicycle and cycle parts is now hopeful that their demand would be met anytime now by the state government.
A meeting of the officer bearers of the UCPMA was also held with the president of industrial wing of SAD Satish Dhanda, who assured the members that steps would be taken to provide relief to the cycle industry, which was one of the major industries of the state.
President of the UCPMA Charanjit Singh Vishivkarma said he was hopeful that the state government would soon take a decision with regard to removing the VAT from bicycle so that the industry could get a relief.
He said the cost of cycle would come down if the VAT was removed.
Dhanda said at least five meetings have been conducted with the excise and taxation department during the past one month to discuss the issue of removal of VAT from bicycle.
Dhanda said during his meeting with deputy chief minister Sukhbir Singh Badal, he told that the VAT on steel should be stagnant on 2.75 per cent, so that there was no loss to the cycle industry. Steel is the basic raw material for a bicycle.
The UCPMA has also appealed to the state government that the bicycle and cycle parts should be exempted from the Goods and Services Tax (GST). Satish Thanda said he had taken major industries into confidence for making bicycle VAT free.
Vishivkarma said at present, the bicycle industry was generating a business of Rs 7,000 crore per year and this could grow to `20,000 crore if VAT was removed from it.
First Published: Jan 08, 2015 14:59 IST