Friday, May 20, 2005

VAT Woes

VAT continues to haunt the city. Just about a month or so after the VAT was rolled out nearly forcefully in the city, its almost nightmarish. Shopkeepers have found a new tool to *legitimetly* loot the consumers. To feel the heat, you just have to walk into any of the retail stores in the city. The shopkeeper will worrysomely tell you that VAT is in effect and you have to pay 12.5% for it. Rarely do you get a *real* VAT reciept as you are supposed. Essentially, the money shopkeepers are collecting in the name of VAT is NOT going into government's treasury.

There are two to three things about the implementation of VAT that need to be immediately addressed.

  1. The awareness in the public as to WHAT VAT really is and how much they are supposed to pay and against what type of commodities.
  2. The awareness in the shopkeepers as to WHAT really they should be collecting and against what type of commodities.
  3. A check on what is being collected and whether that is right and whether that is actually going to the government treasury.

A few days ago I went to the market to buy a mirror. Nearly every shopkeeper informed me after quoting me the price that VAT would be extra @ 12.5 % That left me wondering as to was it correct for government to charge us 12.5 % on all our purchases? Does it mean that the value of Rupee has just gone down that you have to pay rupees 112.5 to buy what you bought for rupees 100 till a month ago?

Obviously, something is broken. VAT is not being implemented properly. Government has just left the public on its own to be looted by the city thugs.